Okay, it may not be exactly what you've heard before, but it is pretty darn close.
In a press release to announce its third quarter financial results, Sears Holdings quoted CEO and president Aylwin Lewis as saying: "We continue to manage our costs effectively as we make the changes necessary to become a customer-driven organization. We are excited to enter the holiday sales period with the products we believe our customers want and an approach that focuses our entire organization in support of our stores in delivering superior customer service across all of our businesses and formats."
Mr. Lewis' observation came on the heels of another profitable quarter for a company that once again achieved that feat even as total revenues declined 2.5 percent compared to the same quarter last year. Comparable store sales at both Sears (-4.8 percent) and Kmart (-0.7 percent) were down.
Sears Holdings indicated it was able to achieve profitability for a number of reasons. These included the company reducing expenses across all its businesses, investing its surplus cash to generate $101 million in income, and resolving tax matters related to Kmart that resulted in a net income gain of $6 million. The company also cited higher gross margins on goods sold.
Discussion Questions: Forget criticizing Edward Lampert or pointing out where Sears Holdings has gone wrong in the past. What would a company with as much cash as Sears Holdings have to do if it were serious about transforming its existing business into a retailing powerhouse?