Sears Holdings Reports Third Quarter Results

HOFFMAN ESTATES, Ill., Nov. 19 /PRNewswire-FirstCall/ -- Sears Holdings
Corporation ("Holdings," "we," "us," "our" or the "Company") (Nasdaq: SHLD)
today reported its results for the third quarter of 2009. In summary, we
reported:

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-- A net loss attributable to Holdings' shareholders for the quarter of
$127 million ($1.09 per diluted share) as compared to a net loss
attributable to Holdings' shareholders of $146 million ($1.16 per
diluted share) in the third quarter of 2008;
-- Excluding significant items, a net loss attributable to Holdings'
shareholders for the quarter of $0.81 per diluted share as compared to a
net loss attributable to Holdings' shareholders of $0.90 per diluted
share in the third quarter of 2008;
-- Improvement in domestic Adjusted EBITDA of $14 million for the third
quarter of 2009 and $128 million for the first nine months of 2009 as
compared to the prior year periods;
-- An increase in comparable store sales at Kmart of 0.5% as compared to
the same quarter in 2008;
-- An increase in our gross margin rate of 40 basis points to 27.2% for the
third quarter of 2009 as compared to the same quarter in 2008;
-- A $101 million reduction in selling and administrative expenses,
adjusted for significant items discussed below, during the third quarter
of fiscal 2009 as compared to the same quarter in 2008;
-- Continued progress in improving our balance sheet, as cash balances
increased to $1.5 billion from $1.2 billion last year, while our total
debt was reduced by $678 million (to $3.8 billion) and domestic letters
of credit were reduced by $194 million (to $803 million) from prior year
levels; and

-- A reduction in usage of our revolving line of credit by $837 million as
compared to November 1, 2008, resulting in total unused borrowing
capacity of $2 billion at October 31, 2009.
"We saw some encouraging signs of progress in the third quarter.
Comparable store sales increased at Kmart and the decline in sales at Sears
moderated during the quarter. Additionally, we increased margin rates and
reduced selling and administrative expenses by $101 million," said W. Bruce
Johnson, Sears Holdings' interim chief executive officer and president. "As
we approach this important selling season, we are focused on executing our
holiday strategy and meeting our customers' needs."

Third Quarter Revenues and Comparable Store Sales

Total revenues decreased $470 million to $10.2 billion for the 13 weeks
ended October 31, 2009, as compared to total revenues of $10.7 billion for
the 13 weeks ended November 1, 2008. The decrease was primarily due to
lower comparable store sales and 56 fewer Kmart and Sears full-line stores,
partially offset by an increase of $42 million due to the impact of foreign
currency exchange rates.

Domestic comparable store sales declined 2.3% in the aggregate for the
quarter, and included an increase at Kmart of 0.5%, offset by a decline at
Sears Domestic of 4.6%. The Kmart quarterly increase in comparable store
sales was primarily driven by the toys and home categories, as well as the
impact of assuming the operations of its footwear business from a third
party effective January 2009. Declines in sales for the quarter at Sears
Domestic include decreases in the home appliance, lawn & garden, tools and
home electronics categories, although sales in the home appliance category
declined to a lesser degree as compared to previous quarters this year.

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