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Sears Hometown and Outlet Q2 net loss decreased $20.1 million

Staff Writer | September 7, 2018
Sears Hometown and Outlet Stores reported results for the second quarter ended August 4, 2018.
Sears   Comparable store sales increased 0.9%
Net loss decreased $20.1 million to $9.3 million from $29.4 million. Loss per share decreased $0.89 to $0.41 loss per share from $1.30 loss per share. Comparable store sales increased 0.9%. Adjusted EBITDA increased $8.5 million to $11.3 million from $2.8 million.

Consolidated comparable store sales were 0.9% in the second quarter of 2018. This represented a significant improvement from comparable store sales of (10.5)% in the first quarter of 2018 and is the first time since the second quarter of 2013 that Sears reported positive consolidated comparable sales.

Consolidated gross margin was $92.0 million, or 21.3% of net sales, in the second quarter of 2018 compared to $92.3 million, or 18.8% of net sales, in the second quarter of 2017. The gross margin rate improvement of 250 basis points mostly offset the volume-related decrease in gross margin. Closing store costs negatively impacted gross margin by 147 basis points and 228 basis points in the second quarters of 2018 and 2017, respectively.