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Also traded in: Germany

GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 4/10

vs
industry
vs
history
Cash-to-Debt 0.06
SHLD's Cash-to-Debt is ranked lower than
94% of the 790 Companies
in the Global Department Stores industry.

( Industry Median: 0.84 vs. SHLD: 0.06 )
Ranked among companies with meaningful Cash-to-Debt only.
SHLD' s Cash-to-Debt Range Over the Past 10 Years
Min: 0.06  Med: 0.37 Max: 8.36
Current: 0.06
0.06
8.36
Equity-to-Asset -0.31
SHLD's Equity-to-Asset is ranked lower than
99% of the 777 Companies
in the Global Department Stores industry.

( Industry Median: 0.48 vs. SHLD: -0.31 )
Ranked among companies with meaningful Equity-to-Asset only.
SHLD' s Equity-to-Asset Range Over the Past 10 Years
Min: -0.31  Med: 0.34 Max: 0.52
Current: -0.31
-0.31
0.52
Piotroski F-Score: 2
Altman Z-Score: 1.02
Beneish M-Score: -2.94
WACC vs ROIC
9.38%
-199.96%
WACC
ROIC
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 2/10

vs
industry
vs
history
Operating Margin % -7.70
SHLD's Operating Margin % is ranked lower than
90% of the 789 Companies
in the Global Department Stores industry.

( Industry Median: 3.20 vs. SHLD: -7.70 )
Ranked among companies with meaningful Operating Margin % only.
SHLD' s Operating Margin % Range Over the Past 10 Years
Min: -4.83  Med: -0.73 Max: 4.77
Current: -7.7
-4.83
4.77
Net Margin % -9.38
SHLD's Net Margin % is ranked lower than
89% of the 788 Companies
in the Global Department Stores industry.

( Industry Median: 1.91 vs. SHLD: -9.38 )
Ranked among companies with meaningful Net Margin % only.
SHLD' s Net Margin % Range Over the Past 10 Years
Min: -7.55  Med: -1.11 Max: 2.81
Current: -9.38
-7.55
2.81
ROA % -19.33
SHLD's ROA % is ranked lower than
93% of the 792 Companies
in the Global Department Stores industry.

( Industry Median: 2.51 vs. SHLD: -19.33 )
Ranked among companies with meaningful ROA % only.
SHLD' s ROA % Range Over the Past 10 Years
Min: -13.73  Med: -2.19 Max: 4.93
Current: -19.33
-13.73
4.93
ROC (Joel Greenblatt) % -48.84
SHLD's ROC (Joel Greenblatt) % is ranked lower than
93% of the 790 Companies
in the Global Department Stores industry.

( Industry Median: 11.32 vs. SHLD: -48.84 )
Ranked among companies with meaningful ROC (Joel Greenblatt) % only.
SHLD' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -23.54  Med: -2.6 Max: 25.14
Current: -48.84
-23.54
25.14
3-Year Revenue Growth Rate -14.40
SHLD's 3-Year Revenue Growth Rate is ranked lower than
89% of the 737 Companies
in the Global Department Stores industry.

( Industry Median: 2.10 vs. SHLD: -14.40 )
Ranked among companies with meaningful 3-Year Revenue Growth Rate only.
SHLD' s 3-Year Revenue Growth Rate Range Over the Past 10 Years
Min: -14.4  Med: 2.6 Max: 25.3
Current: -14.4
-14.4
25.3
3-Year EPS without NRI Growth Rate 6.40
SHLD's 3-Year EPS without NRI Growth Rate is ranked higher than
58% of the 557 Companies
in the Global Department Stores industry.

( Industry Median: 1.70 vs. SHLD: 6.40 )
Ranked among companies with meaningful 3-Year EPS without NRI Growth Rate only.
SHLD' s 3-Year EPS without NRI Growth Rate Range Over the Past 10 Years
Min: -59.2  Med: -19.7 Max: 56.3
Current: 6.4
-59.2
56.3
GuruFocus has detected 4 Warning Signs with Sears Holdings Corp $SHLD.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
» SHLD's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Operating Cash Flow & Free Cash Flow
Operating Cash Flow & Net Income

» Details

Guru Trades

Q1 2016

SHLD Guru Trades in Q1 2016

Francis Chou 1,031,610 sh (+15.12%)
Fairholme Fund 14,497,773 sh (+1.95%)
Edward Lampert 22,336,105 sh (unchged)
Steve Mandel 2,010,000 sh (unchged)
Bruce Berkowitz 26,598,848 sh (-5.69%)
Murray Stahl 2,568,104 sh (-17.94%)
Jim Simons 60,800 sh (-39.08%)
» More
Q2 2016

SHLD Guru Trades in Q2 2016

Francis Chou 1,431,610 sh (+38.77%)
Bruce Berkowitz 27,863,548 sh (+4.75%)
Edward Lampert 22,336,105 sh (unchged)
Steve Mandel 3,500,000 sh (unchged)
Jeremy Grantham 1,054,600 sh (unchged)
Fairholme Fund 14,497,773 sh (unchged)
Jim Simons Sold Out
Murray Stahl 2,265,577 sh (-11.78%)
» More
Q3 2016

SHLD Guru Trades in Q3 2016

Edward Lampert 22,336,105 sh (unchged)
Steve Mandel 3,500,000 sh (unchged)
Jeremy Grantham 2,410,700 sh (unchged)
Francis Chou 1,431,610 sh (unchged)
Fairholme Fund 14,497,773 sh (unchged)
Bruce Berkowitz 27,839,448 sh (-0.09%)
Murray Stahl 2,092,194 sh (-7.65%)
» More
Q4 2016

SHLD Guru Trades in Q4 2016

Edward Lampert 22,336,105 sh (unchged)
Steve Mandel 3,500,000 sh (unchged)
Jeremy Grantham 3,111,300 sh (unchged)
Fairholme Fund 14,497,773 sh (unchged)
Bruce Berkowitz 27,716,348 sh (-0.44%)
Francis Chou 1,131,610 sh (-20.96%)
Murray Stahl 367,662 sh (-82.43%)
» More
» Details

Insider Trades

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Business Description

Industry: Retail - Apparel & Specialty » Department Stores    NAICS: 452111    SIC: 5311
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Traded in other countries:SEE.Germany,
Sears Holdings Corp along with its subsidiaries is an integrated retailer with full-line and specialty retail stores in the United States, operating through Kmart and Sears.

Sears Holdings Corp was incorporated in the State of the State of Delaware on November 23, 2004 in connection with the merger of Kmart and Sears on March 24, 2005. The Company along with its subsidiaries is an integrated retailer with 1,672 full-line and specialty retail stores in the United States, operating through Kmart and Sears. The Company operates in two segments including Kmart and Sears Domestic. The Kmart segment operates approximately a total of 941 Kmart stores across 49 states, Guam, Puerto Rico and the U.S. Virgin Islands. Its store count consists of 934 discount stores, and 7 Super Centers. Its stores are one-floor, free-standing units that carry products across categories, including consumer electronics, seasonal merchandise, outdoor living, toys, lawn and garden equipment, food and consumables and apparel, including products sold under such labels as Jaclyn Smith, Joe Boxer, and certain proprietary Sears brand products (such as Kenmore, Craftsman and DieHard) and services. It also offers appliances, including Kenmore-branded products. The Sears Domestic segment consists operations of Full-line Stores, Specialty Stores, Commercial Sales, and Home Services. It operates 705 stores, of which 697 are Full-line stores located across all 50 states and Puerto Rico. Its Full-line stores offer products and service offerings across merchandise categories, including appliances, consumer electronics/connected solutions, tools, sporting goods, outdoor living, lawn and garden equipment, certain automotive services and products, such as tires and batteries, home fashion products, as well as apparel, footwear, jewelry and accessories for the whole family. Its product offerings include Kenmore, Craftsman, DieHard, Bongo, Covington, Canyon River Blues, Everlast, Metaphor, Roebuck & Co., Outdoor Life, and other brand merchandise such as Roadhandler, Ty Pennington Style, Levi's and WallyHome. Lands' End, Inc. It also operates 26 specialty stores located in free-standing, off-mall locations or high-traffic neighborhood shopping centers. Its Commercial Sales operations sells Sears merchandise, parts and services to commercial customers through its business-to-business Sears Commercial Sales and Appliance Builder/Distributor businesses. Its Sears Commercial Sales sells Sears merchandise, parts and services to commercial customers through its business-to-business Sears Commercial Sales and Appliance Builder/Distributor businesses. It also provides home services, with approximately more than 12 million service and installation calls made annually. It operates websites under the sears.com and kmart.com banners which offer products and provide the capability for its members and customers to engage in cross-channel transactions such as free store pickup; buy in store/ship to home; and buy online, return in store. It is also the home of Shop Your Way, a free member-based social shopping platform that offers rewards, personalized services and

Guru Investment Theses on Sears Holdings Corp

Bruce Berkowitz Comments on Sears - Jan 31, 2017

Focusing on tangible assets has served us over many years, but most believe Sears (NASDAQ:SHLD) to be the exception to the rule. Disruptive technologies; near-zero cost of capital; and few, if any, legacy obligations provide young competitors with great advantages over old-line operators. Today, Airbnb is the largest lodging company in the world without owning a single hotel room. Uber is the world’s largest taxi company without owning a car (and perhaps soon without utilizing a single driver). Intuit’s Rocket Mortgage lends only via the net. Amazon crushes competition without a physical retail footprint. Mega-tech companies are now trusted in all aspects of personal and corporate life. I’m reminded of this every day by my Fairholme team, our clients, fellow directors at Sears, and friends.

Bottom line: Sears has degraded net asset values, but there is still much left and the company is fixing its cash drain. Recent corporate announcements – including (i) the proposed sale of Craftsman to Stanley Black and Decker for a cumulative $775 million plus a 15-year royalty stream on all third-party Craftsman sales to new customers and the use of a perpetual license for the Craftsman brand by Sears (royalty free) for 15 years; (ii) shuttering 150 unprofitable stores in 2017 on top of the roughly 235 stores that were closed in 2016; and (iii) marketing certain properties within the company’s real estate portfolio to further unlock value – reflect an acceleration in the company’s transformation efforts consistent with Chairman Eddie Lampert’s recent public comments:

[In late September 2016], we announced a partnership between Shop Your Way, Sears Auto Centers and Uber. This is another example of how we are transforming Sears Holdings to focus on serving our Shop Your Way members … Expect additional partnerships over time emphasizing our Shop Your Way business … Kmart continues to operate over 700 stores … a significant number of these stores are profitable … we are intent on improving the performance of our unprofitable stores and, if we cannot, we will close them … We are acting more aggressively and continuing to evaluate stores as leases expire and as other opportunities present themselves that improve the economics of Sears Holdings. Our significant asset base gives us the wherewithal to fund our business, but we don’t intend to use our asset value to support losses.4



From Bruce Berkowitz (Trades, Portfolio)'s Fairholme Fund (Trades, Portfolio) annual shareholder letter 2016.

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Bruce Berkowitz Comments on Sears Holdings - Aug 02, 2016

The Funds’ investments in Sears span the capital structure – from common equity to short-duration bonds yielding over 10% – and yours truly joined the Board of Directors in February. The company is “focused on restoring profitability” and improving operating performance by transforming “from a traditional, store-only based retailer into a more asset-light, member-centric integrated retailer.”6 Sears (NASDAQ:SHLD) also announced that it intends to unlock more value for shareholders by exploring strategic alternatives for its Home Services as well as Kenmore, Craftsman, and DieHard brands. Similar public businesses have enterprise values that range from one-half to two times revenues. Market observers are just discovering parts of Sears that they hardly knew existed. Case in point: a press article recently “uncovered” developments at Innovel Solutions (previously known as Sears Logistics Services), a profitable 1,100-truck delivery service with a distribution network consisting of 11 regional warehouses and 24- to 48-hour delivery capability for the majority of households in the United States. The service “has grown 238 percent since 2014”7 and is expanding relationships with manufacturing customers, retailers like Costco, and even the U.S. military. It’s taking much longer than we thought, but we’re still optimistic.


From Bruce Berkowitz (Trades, Portfolio)'s first-half 2016 letter to shareholders.

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Francis Chou Comments on Sears Holdings Corp - May 23, 2016

In July 2015, Sears Holdings Corporation (NASDAQ:SHLD) announced that it had closed its rights offering and sale-leaseback transactions with Seritage Growth Properties (“Seritage”), a recently formed, independent, publicly traded real estate investment trust (“REIT”).

In the transaction, Sears sold 235 Sears- and Kmart-branded stores to Seritage along with Sears’ 50 percent interests in joint ventures with each of Simon Property Group, Inc., General Growth Properties, Inc. and The Macerich Company, which together, hold an additional 31 Sears Holdings properties. Based on our rough estimate, this represented less than 25% of the company’s real estate assets.

Sears Holdings received aggregate gross proceeds from the transaction of $2.7 billion, which provides the Company with enhanced financial flexibility to accelerate investments in its transformation to an asset-light, member-centric, integrated retailer.

However, from our perspective, the most important thing that happened was that Seritage is now a public company and when its stock trades daily, we have a more reliable way of assessing the real estate value in SHLD indirectly. We also know that pre-Seritage and post-Seritage, the profile and the quality of the properties held in Seritage and SHLD is roughly the same.

At the current price of $15 for Sears, the company is being priced in the market for about $1.5 billion. Even if you include the debt of roughly $3 billion, we believe that the price of Sears is severely underpriced.

However, the comparison is not apples to apples. Seritage is a clean real estate company whereas SHLD has some serious problems with its retail operations. As every day goes by, the losses from operations are eroding the value of SHLD that comes from its real estate and brand names. Those brand names such as Kenmore, Craftsman and Diehard, we believe collectively could be worth as much as $3 billion. The transformation from the bricks-and-mortar business to their member-centric Shop Your Way (www.shopyourway.com) is happening; whether it is going to be successful or not is another story. These types of ventures should be classified as “venture capitals” and in spite of all the positive spins written about the transformation, it is still a hit or miss affair. Still, netting out all the negatives and all the losses from operations, we believe that the intrinsic value of Sears is far above the current price of $15.

From Francis Chou (Trades, Portfolio)'s 2015 annual shareholder letter.

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Bruce Berkowitz Comments on Sears - May 20, 2016

Daniel Schmerin: Let’s move on, we received the most questions about Sears (NASDAQ:SHLD).





How do you evaluate your investment in Sears today?





Bruce Berkowitz (Trades, Portfolio): Our thesis on Sears cannot be disproven: Sears has a vast real estate empire complemented by unique businesses. Sears also has constraints, and we understand those constraints. As part of our investment process, we developed progress checklists concerning Sears’ fixed obligations, balance sheet strength, footprint, pension fund obligations, the repurposing of real estate, and spinning off companies that would benefit from independence. We thought about all of the possibilities and the potential.





We do understand today that the retail world is morphing, and we understand the challenge of optimizing a huge set of company assets subject to those constraints. On our checklist the two remaining issues are pension fund obligations and retailing losses. The first, the pension fund obligation, should improve over time, especially with higher interest rates. The other remaining issue, the retail losses, is, in our opinion, voluntary, and is expected to stop this year.





Daniel Schmerin: We received several questions about the mistakes that Sears has made over the years, and the impact that those mistakes have had on our investment.





What are you views?





Bruce Berkowitz (Trades, Portfolio): Dan, nobody is perfect, and in hindsight it’s easy. Yes, Sears bought back stock too high. Yes, I was way, way too early in buying Sears stock for our shareholders. Yes, Sears’ pension obligation has been a larger consumer of cash than I anticipated, due in part to the prolonged low interest rate environment. I did not predict that the pension fund would chew up $2 billion of cash in recent years, which as of today is more than the entire market cap of the company.





Yes, these have been unforced errors that have caused a delay of game. It is taking longer than I thought to maximize and monetize the enormous asset base under the Sears umbrella than we would have expected, but it is happening. Last year’s spin-off of 266 properties to a newly formed real estate investment trust called Seritage is proof positive. And the nearly $32 of distributions that shareholders have received from other Sears corporate actions serves as additional proof.



Daniel Schmerin: Is it fathomable that the market is missing the huge gap between Sears’ current stock price and our estimate of intrinsic value, which you published in our Annual Letter last month?





Bruce Berkowitz (Trades, Portfolio): It’s not just fathomable, it’s today’s reality. Our shareholders have to remember Fairholme’s success to date is precisely based on this concept that having a unique viewpoint allows us to buy companies at tremendous discounts. It wasn’t that long ago that AIG was perceived to be dead; Bank of America was perceived to be dead; the entire financial system was about to go over the cliff. We disagreed, and we invested in financial companies and helped stabilize those companies to the benefit of our shareholders, and the country recovered.

We expect the same to be true of all our current investments, including Sears. The facts tell us that we own valuable assets at historic discounts. The facts determine our confidence and willingness to stay the course. Either Sears’ price is going to climb to our assessment of intrinsic value, or we are wrong about that value and it will decline toward the current stock price. Most likely the stock price and our estimate of intrinsic value will meet somewhere in the middle of this large range of possibilities, the same way it has happened for almost every investment at Fairholme.





Daniel Schmerin: We recognize Sears has spent a considerable amount of money trying to stay competitive in a rapidly changing retail environment.





Has it been worthwhile?





Bruce Berkowitz (Trades, Portfolio): I don’t know yet. If Sears is able to return to profitability this year, which is the company’s most important focus during 2016, then yes it has been worthwhile. A considerable portion of the past cash burn is voluntary based on the transformation of the retail businesses. The remaining portion is based upon the pension and rent expenses, which will go down with time. Again, Sears has been going through this metamorphosis, and its technology spending and Shop Your Way marketing spending has been very costly. However, we expect much of the heavy lifting is over, and those expenses should decline.





Daniel Schmerin: Three shareholders asked about the recent Schedule 13D filing, and the perception that you will push for change at Sears.





So what’s the truth?





Bruce Berkowitz (Trades, Portfolio): Fairholme owns over 25% of Sears’ stock as well as various other Sears-related securities. In mid-December we filed a Schedule 13D on our Sears position. We filed on behalf of our shareholders, and it is important that I express my views to the company. In fact, I was invited to express my views to the company just last month in front of their Board of Directors. I took that opportunity to explain Fairholme’s investment perspective on the company as a whole, as well as its various business units.

This included our view regarding the need to preserve the enormous value of its assets and the imperative to promptly return to profitability. I focused on the cash burn, and how the continuation of the cash burn does not build confidence or trust among all of Sears’ constituents – I’m talking about Sears’ customers, vendors, suppliers, employees, creditors, and investors.





I also discussed my belief that eliminating the cash burn will do more to optimize the value of Sears’ assets than any other action. I also shared my view for Sears to help shareholders better understand the company’s assets and strategies by giving them more information. The bottom line is not everyone has the ability to spend as much time studying Sears as we do. Most people only focus on stock price, and while it is wrong, it is human nature. I recognize that much of what Sears’ management has written has proven true. I recognize that most do not understand the vast asset base at Sears, and I recognize that most do not understand the complexity of optimizing all of the assets. More information and a little more hand holding may be helpful – it sure won’t hurt.





I must tell you after I gave my thoughts to the Board and left, I did not sense any disagreement among the Board with any of the points that I raised. I left feeling that we were squarely on the same page. I clearly believe that they know what to do and my views were not revolutionary at all. Also, it is important to note that as I left, there appeared to be an appropriate sense of urgency for these matters.

From Bruce Berkowitz (Trades, Portfolio)'s Feb. 23, 2016, Fairholme Fund (Trades, Portfolio) conference call.

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Bruce Berkowitz Comments on Sears Holdings Corp - Feb 03, 2016

Sears Holdings Corporation (“Sears”) (NASDAQ:SHLD) common stock, warrants, and bonds comprise 13.2% of Fund assets. Our ongoing valuation work reinforces our longstanding belief that Sears is worth multiples of its current market price (as evidenced in the chart below), largely based on its vast real estate empire and disparate businesses confi gured to sell, deliver, connect, control, service, and replace all manner of consumer products. Throughout the year, the Fund took advantage of price declines to increase its stake.

Last year’s sale of 266 properties for $3.1 billion unlocked one-fourth of the company’s real estate square footage. The properties included in the transaction were not exclusively the crème de la crème of the company’s real estate portfolio as many have falsely asserted. Instead, the quality of the properties included in the transaction closely mirrors the approximately 170 million square feet of real estate retained by Sears today as depicted in the following chart.

Proceeds from the sale were used to reduce corporate debt by $936 million, and the company must now accelerate its return to profi tability in order to rebuild confi dence with customers, creditors, vendors, employees, and other investors. Doing so should enable Sears to optimize the value of all its assets.



From Bruce Berkowitz (Trades, Portfolio)'s 2015 Annual Letter for the Fairholme Allocation Fund.

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Bruce Berkowitz Comments on Sears Holdings Corp - Feb 03, 2016

Sears Holdings Corporation (“Sears”) (NASDAQ:SHLD) common stock, warrants, and bonds comprise 13.2% of Fund assets. Our ongoing valuation work reinforces our longstanding belief that Sears is worth multiples of its current market price (as evidenced in the chart below), largely based on its vast real estate empire and disparate businesses confi gured to sell, deliver, connect, control, service, and replace all manner of consumer products. Throughout the year, the Fund took advantage of price declines to increase its stake.

Last year’s sale of 266 properties for $3.1 billion unlocked one-fourth of the company’s real estate square footage. The properties included in the transaction were not exclusively the crème de la crème of the company’s real estate portfolio as many have falsely asserted. Instead, the quality of the properties included in the transaction closely mirrors the approximately 170 million square feet of real estate retained by Sears today as depicted in the following chart.

Proceeds from the sale were used to reduce corporate debt by $936 million, and the company must now accelerate its return to profi tability in order to rebuild confi dence with customers, creditors, vendors, employees, and other investors. Doing so should enable Sears to optimize the value of all its assets.

From Bruce Berkowitz (Trades, Portfolio)'s 2015 Annual Letter for the Fairholme Fund.

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Francis Chou Comments on Sears Holdings Corp - Mar 31, 2015

As we have indicated before, we believe that Sears Holdings (SHLD) is a misunderstood story. There are many moving parts but we believe Sears Holdings’ intrinsic value lies in its real estate assets. It also has other valuable assets such as Kenmore, Craftsman and Diehard. Being a traditional department store has become a tough business during the last decade but, according to management, Sears is transitioning its historic focus on running a brick and mortar department store into a business that provides and delivers value by serving its members in the manner most convenient for them: whether in store, at home or through digital devices.

The value of its real estate allows Eddie Lampert, the controlling shareholder and CEO, the time and money to effect the changes. What Lampert is doing is the right thing to do, considering the possible outcomes – if it works, it’ll be a multi-bagger; if the transformation does not work out as expected, we believe the real estate values are high enough that we would not lose money in our investment at current prices after netting out all liabilities. If real estate was the only play from Lampert’s viewpoint, it seems that he would have liquidated the company a long time ago.

Caveat Emptor: With Sears announcing the REIT plans for part of their real estate holdings, which could be effected by the end of this year, those who bought Sears on the basis of that if the retail operations do not pan out, the value is covered by its real estate - that kind of reasoning will be less valid than before.

So, after the REIT transaction, you will be betting more on Sears' retail transformation, ostensibly called as 'SHOPYOURWAY'. If it doesn't work out, Lampert will be called 'LOSTYOURWAY', and so will be the investors who are still holding the stock.

The various bonds and debentures in Sears will also have less coverage than before. Lampert was smart enough to structure the debt in such a manner that if parts of Sears were spun off directly or through rights offerings, fraudulent conveyance laws wouldn't come into play.

Some of the debt like the one at Sears, Roebuck and Acceptance Corp. (SRAC) are guaranteed by Sears Holdings, but the assets of Lands' End, Sears Hometown and Sears Canada have flown the coop. On some of these transactions, Sears did receive the cash, and that may mitigate the argument of fraudulent conveyance laws. Unfortunately, the level at which cash is being consumed is unacceptable and if the transformation does not happen soon enough or is not sufficiently successful, it may make staying invested in Sears a highly risky investment, despite its vast real estate holdings.

There is one unusual quirk in the latest bond issuance with a coupon of 8%, maturing in 2019. It looks junior to the SRAC bonds but it gives the warrant holder the right to use this 8% bonds at 100 cents on a dollar to buy Sears Holdings stock at $28.41 per share. No wonder it is trading at 96 cents on a dollar versus 60 cents on a dollar for the SRAC bonds.

From Francis Chou (Trades, Portfolio)’s Chou Funds 2014 Annual Report.

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The peaks and valleys that define the chart of the Fairholme Fund (Trades, Portfolio)’s performance jutted to a new summit in 2016, proclaiming to investors that a mere $10 laid in the hands of Bruce Berkowitz (Trades, Portfolio) in 2000 would be worth $62.21 today. Far below, at base camp, investors entrusting the same amount to the comparatively plodding and oxygen-starved S&P 500, after clocking another year in its hike, get $20.84 back. Read more...
Sears CEO Eddie Lampert of ESL Investments Sells 4 Portfolio Stocks Lampert raises $75 million amid tough quarter for his company
Eddie Lampert raised approximately $75 million selling stocks from his hedge fund’s portfolio in the third quarter. It is unknown whether any of the proceeds went toward a $300 loan he made to his struggling retailer Sears Holdings (NASDAQ:SHLD) in September, but he also spent nothing on new investments or increases to existing positions over the period. Read more...
Guru and Insider Invests in Lands' End Insider purchased 412,294 shares
Edward Lampert (Trades, Portfolio), insider and 10% owner of Lands’ End (NASDAQ:LE), purchased 412,294 shares in eight separate transactions on eight separate days, according to the Securities and Exchange Commission. Read more...
Bruce Berkowitz Leans Toward Lands’ End Guru increased his position in retailer in 3rd quarter
Bruce Berkowitz (Trades, Portfolio) of Fairholme Capital Management increased his position in Lands’ End Inc. (NASDAQ:LE) by 11.8% on Sept. 30. Read more...
Sears Holdings Reports Steep Loss, Takes Loan From Lampert in Q2 Lampert, Berkowitz focus on turning a profit at 'transforming' company
Sears Holdings reported a second-quarter earnings loss Thursday as it continues to pursue its strategy of “transformation” under leadership of well-known hedge fund manager Eddie Lampert. Read more...
Bruce Berkowitz Increases 3 Positions in 2nd Quarter Guru reports quarterly portfolio
Established Dec. 29, 1999, the Fairholme Fund (Trades, Portfolio) seeks long-term capital growth through various equity securities, including common company stock and real-estate investment trust interests. Read more...

Ratios

vs
industry
vs
history
PS Ratio 0.04
SHLD's PS Ratio is ranked higher than
99% of the 1002 Companies
in the Global Department Stores industry.

( Industry Median: 0.72 vs. SHLD: 0.04 )
Ranked among companies with meaningful PS Ratio only.
SHLD' s PS Ratio Range Over the Past 10 Years
Min: 0.03  Med: 0.12 Max: 0.41
Current: 0.04
0.03
0.41
Current Ratio 1.04
SHLD's Current Ratio is ranked lower than
76% of the 913 Companies
in the Global Department Stores industry.

( Industry Median: 1.57 vs. SHLD: 1.04 )
Ranked among companies with meaningful Current Ratio only.
SHLD' s Current Ratio Range Over the Past 10 Years
Min: 0.9  Med: 1.3 Max: 3.62
Current: 1.04
0.9
3.62
Quick Ratio 0.16
SHLD's Quick Ratio is ranked lower than
96% of the 912 Companies
in the Global Department Stores industry.

( Industry Median: 0.83 vs. SHLD: 0.16 )
Ranked among companies with meaningful Quick Ratio only.
SHLD' s Quick Ratio Range Over the Past 10 Years
Min: 0.13  Med: 0.28 Max: 2.05
Current: 0.16
0.13
2.05
Days Inventory 103.67
SHLD's Days Inventory is ranked lower than
58% of the 886 Companies
in the Global Department Stores industry.

( Industry Median: 88.95 vs. SHLD: 103.67 )
Ranked among companies with meaningful Days Inventory only.
SHLD' s Days Inventory Range Over the Past 10 Years
Min: 90.89  Med: 99.12 Max: 103.94
Current: 103.67
90.89
103.94
Days Sales Outstanding 5.81
SHLD's Days Sales Outstanding is ranked higher than
70% of the 721 Companies
in the Global Department Stores industry.

( Industry Median: 13.41 vs. SHLD: 5.81 )
Ranked among companies with meaningful Days Sales Outstanding only.
SHLD' s Days Sales Outstanding Range Over the Past 10 Years
Min: 5.02  Med: 5.84 Max: 6.55
Current: 5.81
5.02
6.55
Days Payable 30.87
SHLD's Days Payable is ranked lower than
78% of the 660 Companies
in the Global Department Stores industry.

( Industry Median: 52.41 vs. SHLD: 30.87 )
Ranked among companies with meaningful Days Payable only.
SHLD' s Days Payable Range Over the Past 10 Years
Min: 24.6  Med: 33.77 Max: 38.25
Current: 30.87
24.6
38.25

Buy Back

vs
industry
vs
history
3-Year Average Share Buyback Ratio -0.30
SHLD's 3-Year Average Share Buyback Ratio is ranked higher than
54% of the 494 Companies
in the Global Department Stores industry.

( Industry Median: -0.40 vs. SHLD: -0.30 )
Ranked among companies with meaningful 3-Year Average Share Buyback Ratio only.
SHLD' s 3-Year Average Share Buyback Ratio Range Over the Past 10 Years
Min: -20.2  Med: 3.8 Max: 9.6
Current: -0.3
-20.2
9.6

Valuation & Return

vs
industry
vs
history
Price-to-Median-PS-Value 0.29
SHLD's Price-to-Median-PS-Value is ranked higher than
97% of the 860 Companies
in the Global Department Stores industry.

( Industry Median: 1.04 vs. SHLD: 0.29 )
Ranked among companies with meaningful Price-to-Median-PS-Value only.
SHLD' s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.42  Med: 1.13 Max: 3.89
Current: 0.29
0.42
3.89
Earnings Yield (Greenblatt) % -38.20
SHLD's Earnings Yield (Greenblatt) % is ranked lower than
96% of the 1047 Companies
in the Global Department Stores industry.

( Industry Median: 5.27 vs. SHLD: -38.20 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) % only.
SHLD' s Earnings Yield (Greenblatt) % Range Over the Past 10 Years
Min: 1.4  Med: 8.45 Max: 17.8
Current: -38.2
1.4
17.8
Forward Rate of Return (Yacktman) % -1.24
SHLD's Forward Rate of Return (Yacktman) % is ranked lower than
60% of the 544 Companies
in the Global Department Stores industry.

( Industry Median: 3.67 vs. SHLD: -1.24 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) % only.
SHLD' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -20.6  Med: -2 Max: 37.6
Current: -1.24
-20.6
37.6

More Statistics

Revenue (TTM) (Mil) $23,389
EPS (TTM) $ -20.54
Beta1.12
Short Percentage of Float71.19%
52-Week Range $5.50 - 19.12
Shares Outstanding (Mil)107.03
» More Articles for SHLD

Headlines

Articles On GuruFocus.com
Francis Chou Adds to Valeant, Trims Sears in 4th Quarter Feb 16 2017 
Sears Soars 28% Amid CEO Assurance Feb 12 2017 
A Household Name With a High Dividend Feb 09 2017 
Large Retailers Work to Keep Pace With Online Markets Feb 02 2017 
Bruce Berkowitz Comments on Sears Jan 31 2017 
Bruce Berkowitz's Full-Year Fairholme Fund Letter Jan 31 2017 
Oprah May Be Making a Huge Mistake With Weight Watchers Jan 18 2017 
Amazon Delights Trump Jan 16 2017 
US Retailers May Look Valuable, but Watch the Trap Jan 11 2017 
Sears Sells Craftsman Brand to Stanley Black & Decker Jan 05 2017 

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