Lampert will proceed to serve as Sears Holdings' board of directors chairman, in addition to his new CEO title, which is set to take into effect Feb. 2. D’Ambrosio will remain on the board until the company’s next Annual Meeting of Stockholders, to be held May 2013.
“In light of Lou's decision to step down, the Board feels it is important that there is continuity of leadership during this important period of transformation and improvement at Sears Holdings,” Lampert said. “I have agreed to assume these additional responsibilities in order to continue the company's recovery and sustain the momentum we are experiencing, as well as further the development of the management team under the distributed leadership model, which provides our business unit leaders with greater control, authority and autonomy.”
Prior to the succession, Sears Holdings remained Lampert’s largest holding, with a portfolio weighting of 42.1 percent, which represents 39.71 percent of the company’s outstanding shares. His position in the company is worth over $2.3 billion.
Having only been with Sears since February 2011, D’Ambrosio will leave a company that has gained 46.16 percent in market value over the past year.
For the fourth quarter, Sears Holdings expects an adjusted EBITDA between the range of $365 million and $465 million, surpassing the $351 million made in the same period last year. For the full year, the company expects its adjusted EBITDA to fall in the range between $560 million and $660 million, much higher than the $277 million the year before.
In October, the company had almost $2 billion in debt, according to it 10-Year Financials, which D’Ambrosio said the company reduced by $400 million as of Dec. 29.
Last February, Sears Holdings separated from its outlet segment, Sears Hometown (NASDAQ:SHOS), which made the company the aggregate gross proceeds amount of $346.5 million, from exercised subscription rights by 95 percent of its shareholders. (See Lampert Exercises Stock Option for Sears Hometown)
Sears Holdings stock is down 6.25 percent this morning, trading at $40.19 per share. GuruFocus ranks the company a 5 in Financial Strength and a 2 in Profitability and Growth.
To view Edward Lampert’s latest trades, visit Stock Picks. Also view his current portolio.
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