Sears Holdings Corp., the retailer run by hedge fund manager Edward Lampert, posted a 10.6 percent drop in same-store sales last quarter, its second consecutive period of double-digit declines.
The company's sales fell 13.9 percent at Sears-branded stores, and they decreased 6.9 percent at its Kmart chain, according to a statement on Monday. Sluggish demand for consumer electronics contributed to the decline, which follows an 11 percent drop in the first quarter. The suburban Chicago company said it's now working to revamp that product category.
The results reflect Lampert's challenges in turning around Sears, a storied department-store chain that has struggled to connect with today's shoppers. To stem the flow of red ink, he has been shedding assets such as the Lands' End clothing business.
"We intend to continue taking significant actions to alter our capital structure," Sears said on Monday, including further reductions in debt or changes in the composition of its debt.
The numbers sent Sears shares down as much as 7.6 percent to $19.92 on Monday, the biggest intraday decline in nearly two months. The shares had already fallen 28 percent this year through the end of last week.
Even as sales tumble, the company is making progress in restoring profitability. Sears' adjusted loss before interest, taxes, depreciation and amortization was $189 million to $249 million in the second quarter, which ended July 25.
That would be the fourth quarter of improvement on that basis.