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What: Sears Holdings shares were getting sheared today, falling as much 18% after a dismal quarterly earnings report.
So what: The struggling retaile posted an adjusted first-quarter loss of $1.29 a share, a full $0.60 worse than analysts had expected. Revenue also fell 9% to $8.45 billion, though that slightly beat Wall Street expectations of $8.37 billion. Same-stores sales were down 3.6%.
Now what: The only question I have about Sears is why shares were so high to begin with. The chain has been grossly mismanaged by Eddie Lampert, who's chosen to run it as an financial asset rather than a retail business, and is one of many retailers that is getting squeezed by the vice grip of Amazon.com, Wal-Mart, and other industry giants. Sears is a dying brand, and the stock can only fall so far behind the company.
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The article Why Sears Shares Tumbled originally appeared on Fool.com.Fool contributor Jeremy Bowman and The Motley Fool have no position in any stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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