Sears Holdings to close 21 stores, quarterly results top estimates

Hoffman Estates, Ill. Sears Holdings Corp. announced late Monday that it plans to shutter 21 underperforming stores this spring around the country.

The impending Kmart and Sears closures bring the number of stores that Sears Holdings has said over the past year that it will shutter to 56.

On Tuesday, the retailer released its fourth-quarter results, reporting a rise in net income to $430 million, from $190 million in the year-ago period. Sears cited improved sales at its Kmart stores as reason for the improvement. Cost-cutting also aided the strengthened results.

Total revenue for the quarter ended Jan. 30 fell $33 million to $13.2 billion for the period as the 1.7% increase in Kmart same-store sales was offset by a decline of 6.1% in same-store sales at Sears Domestic outlets.

Revenue results were also hurt by 62 fewer stores.

The 1.7% gain at Kmart was primarily driven by increases in toys and home goods, while the decline at Sears was caused by decreases in the home appliance, lawn and garden and home electronics categories.

Analysts expected revenue of $12.90 billion for the period.

Sears Holdings operates more than 3,900 stores in the United States and Canada.