Sears Hometown profit declines in Q2; will close stores

Hoffman Estates, Ill. – Sears Hometown & Outlet Stores Inc. posted declining profits and revenues in a generally difficult second quarter of fiscal 2015.



The retailer plans to close 40-50 underperforming stores by the end of the year, on top of 63 underperforming locations closed in the first half of 2015.



Sears Hometown reported net income of $1.51 million, down 55% from $3.36 million the same period a year earlier. Costs and expenses did not decline at the same rate as net sales, which dropped 3% to $619.62 million from $638.69 million. Same-store sales fell 1.4%.



Sears Hometown increased promotions in the quarter. Looking ahead, the retailer expects to save $2 million in 2015 and $6 million in 2016 through payroll reduction and restructuring. In addition, Sears Hometown plans to marketing costs per store while increasing overall impressions and customer draw by relying more on localized digital marketing and less on mass print.