Challenges and Successes

Author's Avatar
Jun 13, 2007
Article's Main Image
Eddie Lampert shareholder letter for fiscal 2006. "While we like to think of ourselves as a start-up, we are different from most start-ups in our cash flow generation."


"As we look ahead, I want there to be no doubt about one thing: It is certainly our intention to grow Sears Holdings. Some commentators have asserted that we want to shrink the Company, but that is simply not so. No great company would aspire to become smaller, and we certainly do not. But before embarking on a growth plan, it is critical to provide a sound base from which to grow. To this end, we have set out to improve the profitability of our business model. Our objective is disciplined growth. We do not want to grow simply for the sake of becoming bigger. Rather, our aim is to become more profitable, and as such we need to ensure that any revenue growth occurs at an appropriate level of profitability."


"Since the closing of the merger in March 2005, we have significantly improved the profitability of our business. We have done this in large part by eliminating unprofitable sales and by challenging our expense structure. Certainly, we will continue to perform these tasks routinely in the future. But in order to reach the level of profitability we believe we can achieve, we must do more. To succeed, our Company will have to think differently and become more innovative - in both the products and services we offer and the manner in which we offer them."


Read the complete shareholder letter