Sears Holdings Corporation reported its fourth quarter and full year 2012 results.
-Adjusted EBITDA of $429 million for the fourth quarter of 2012 and $626 million for the year, which were both in line with our guidance provided on January 7, 2013. Adjusted EBITDA for the prior year fourth quarter and year were $351 million and $277 million, respectively;
-Gross margin rate increased 130 basis points for the fourth quarter of 2012 and 90 basis points for the year from the comparable prior year periods;
-Continued discipline of our investment in inventory with Domestic inventory declining $895 million from the prior year. Excluding the inventory related to the Sears Hometown and Outlet businesses, Domestic inventory declined $501 million;
-Sears Domestic's comparable store sales improved 0.8% in the fourth quarter of 2012 and declined 1.4% for the year. Kmart's comparable store sales declined 3.7% in the fourth quarter and for the year. Sears Canada's comparable store sales declined 3.8% in the fourth quarter and 5.6% for the year;
-Our integrated online business grew over 25% in the fourth quarter of 2012 and 17% for the full year;
-SHOP YOUR WAY Members drove over 50 percent of our revenues at Sears Domestic and Kmart for the 2012 fourth quarter and year;
-Net loss from continuing operations attributable to Holdings' shareholders of $489 million and $930 million, ($4.61 and $8.78 loss per diluted share from continuing operations), respectively, for the fourth quarter and full year 2012. Prior year fourth quarter and year net losses were $2.4 billion and $3.1 billion ($22.47 and $29.15 per diluted share from continuing operations), respectively; and
-Adjusted earnings per diluted share from continuing operations for the fourth quarter of $1.12 in 2012 and $0.54 in 2011 and adjusted loss per diluted share from continuing operations for the year of $2.03 in 2012 and $4.52 in 2011.
"Sears Holdings made progress in 2012 improving the profitability of our business, but we know there's more work to be done in 2013," said Edward S. Lampert, Sears Holdings' Chairman and Chief Executive Officer. "Our focus continues to be on our core customers, our Members, and finding ways to provide them value and convenience through Integrated Retail and our SHOP YOUR WAY Membership platform. We have invested significantly in our online ecommerce platforms, our Membership rewards program and the technology needed to support these initiatives."
Fourth Quarter and Full Year Revenues and Comparable Store Sales
We follow a retail-based financial reporting calendar. Accordingly, our fourth quarter and fiscal year 2012 results reflect the 14- and 53- week periods ended February 2, 2013, respectively, whereas 2011 contained 13- and 52- weeks for the fourth quarter and year, respectively.