New CEO Lampert Ready to Save Sears from Sinking - Research Report on Sears Holdings Corporation

 New CEO Lampert Ready to Save Sears from Sinking - Research Report on Sears
                             Holdings Corporation

Sears Holdings continue to rise as the new CEO Edward S. Lampert increases his
stake from 56.2% to 56.5%. Will this mark a turn the tides for the struggling
company?

PR Newswire

NEW YORK, January 24, 2013

NEW YORK, January 24, 2013 /PRNewswire/ --

Sears Holdings Corporation (NASDAQ: SHLD) [Full Research Report]^(1) recently
announced the resignation of CEO Lou D'Ambrosio, whose his two-year term
continued the company's five consecutive years of declining revenue. The new
CEO, Edward S. Lampert, has increased his stake from 56.2% to 56.5%, causing
the stock to rise 41% over the last 12 months. Morningstar analyst Paul
Swinand comments on the rise on the stock, "[Lampert]'s buying again so it
builds confidence and fear for anyone who is short the stock." Lampert is
designated to take over the position of CEO on February 2.

The company's earnings have been steadily declining at a rate of 37% annually
for the last five years. With a negative cash flow of -$248 million and a
profit margin of -7.1% in the last 12 months, the company's earnings per share
for the fiscal year ending in January 2013 are expected to be around -$2.64,
and next year's earnings per share are projected lower at -$3.60 per share.
While the company's stock may be rising now due to Lampert's increased stake
in the company, the stock price should continue its declining state as the
company continues to lose money and as the rate of negative earnings growth
increases.

Former CEO D'Ambrosio had previously worked at a telecommunications company
called Avaya and International Business Machines, and with his experience, he
boosted the company's ecommerce initiatives. Sears and its competitor,
JCPenney, have lost half of their market share to Amazon, the online retailing
giant. This showed the crucial need for improved ecommerce efforts from the
company, and eventually led to the launch of ShopYourWay.com, the company's
free membership program and shopping community.

However, the company's revenue and earnings have continued to decline since
ShopYourWay was launched in 2009. In an effort to elevate the ShopYourWay
program, the company now plans to release two new celebrity brands featuring
music icons Adam Levine and Nicki Minaj. The new clothing lines will be
launched using the ShopYourWay.com platform and they will also be available at
select Kmart stores before the end of 2013. Seeing that these celebrities are
highly popular among the youth, we can see how Sears is now trying to
penetrate a younger demographic that's highly interested in pop culture and
online shopping.

Nevertheless, Sears must continue to find ways to turn the tides around for
the company. It must learn how to regain its market share and it must remain
competitive alongside other retailers. A writer at Forbes comments, "If
[Lampert] can get the leadership team aligned, and keep them aligned, his
chances of success are much higher. He'll have the best chance if he can stay
true to his vision."

Reference Links:

^(1) ^ The Full Research Report on Sears Holdings Corporation - including
full detailed breakdown, analyst ratings and price targets - is available to
download free of charge at:
[http://www.nationaltradersassociation.org/r/entire_report/a84e_SHLD]

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