Sears Holdings Corporation: Company Profile and SWOT Analysis by ICDResearch

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									Sears Holdings Corporation

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Sears Holdings Corporation                                                     Financial Snapshot

                                                                               Operating Performance
Fast Facts
                                         3333 Beverly Road, Hoffman Estates,   The company reported revenues of US$43,326.00
Headquarters Address
                                         60179,Other                           million during 2011, with a CARC of -4.92% during
                                                                               2007–2011. Its revenue declined at an annual rate of
Telephone                                 + 18472862500
                                                                               1.63% over the previous fiscal year. In 2011, the
                                                                               company recorded an operating margin of 1.09%, as
Fax                                       + 18472868351                        against 1.62% in 2010.

Website                                  www.searsholdings.com
                                                                               Revenue and Margins
Ticker Symbol, Stock Exchange            SHLD, NASDAQ

Number of Employees                      312,000

Fiscal Year End                          January

Revenue (in US$ million)                 43,326.00




SWOT Analysis

Strengths                                Weaknesses                            Return on Equity

Diversified product and brand portfolio Declining profitability                The company recorded a return on equity (ROE) of
                                                                               1.56% for 2011, as compared to its peers, Target
                                                                               Corporation (Ticker: TGT), The Home Depot, Inc.
Multiple retail formats                  Legal proceedings                     (Ticker: HD) and Macy''s, Inc. (Ticker: M), which
                                                                               recorded ROEs of 18.85%, 17.67% and 15.32%
Strong market presence                                                         respectively. The company reported an operating
                                                                               margin of 1.09% in 2011.
Opportunities                            Threats
                                                                               Return on Equity
Extension of product line                Increase in online theft in the US

Growth in online retailing               Rise in manpower costs

Increase in expenditure on healthcare
                                         Rise in organized retail crime
in the US




                                                                               Liquidity Position

                                                                               The company reported a current ratio of 1.34 in 2011,
                                                                               as compared to its peers, Target Corporation, The
                                                                               Home Depot, Inc. and Macy''s, Inc., which recorded
                                                                               current ratios of 1.71, 1.33 and 0.00 respectively. As
                                                                               of January 2011, the company recorded cash and
                                                                               short-term investments of worth US$1,375.00 million,
                                                                               against US$509.00 million current debt. The company
                                                                               reported a debt to equity ratio of 0.41 in 2011 as
                                                                               compared to its peers, Target Corporation, The Home
                                                                               Depot, Inc. and Macy''s, Inc., which recorded debt to
                                                                               equity ratios of 1.02, 0.52 and 0.00 respectively.




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Sears Holdings Corporation - SWOT Profile                                                                              Page 1
Sears Holdings Corporation

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1     Company Overview .................................................................................................................................................5
    1.2     Business Description ...............................................................................................................................................5
    1.3     Major Products and Services ...................................................................................................................................6
2     Analysis of Key Performance Indicators ............................................................................................... 7
    2.1     Five Year Snapshot: Overview of Financial and Operational Performance Indicators ...........................................7
    2.2     Key Financial Performance Indicators ...................................................................................................................10
      2.2.1        Revenue and Operating Profit .......................................................................................................................10
      2.2.2        Asset, Liabilities and Capex ..........................................................................................................................11
      2.2.3        Net Debt vs. Gearing Ratio ............................................................................................................................12
      2.2.4        Operational Efficiency ....................................................................................................................................13
      2.2.5        Solvency ........................................................................................................................................................14
      2.2.6        Valuation ........................................................................................................................................................15
    2.3     Competitive Benchmarking ....................................................................................................................................16
      2.3.1        Market Capitalization .....................................................................................................................................16
      2.3.2        Efficiency .......................................................................................................................................................17
      2.3.3        Capital Expenditure .......................................................................................................................................18
      2.3.4        Valuation ........................................................................................................................................................19
      2.3.5        Turnover – Inventory and Asset ....................................................................................................................20
3     Mergers & Acquisitions and Partnerships ........................................................................................... 21
    3.1     M&A and Partnerships Strategy ............................................................................................................................21
4     Recent Developments ........................................................................................................................... 29
5     SWOT Analysis ...................................................................................................................................... 31
    5.1     SWOT Analysis - Overview ...................................................................................................................................31
    5.2     Strengths ...............................................................................................................................................................31
    5.3     Weaknesses ..........................................................................................................................................................31
    5.4     Opportunities .........................................................................................................................................................32
    5.5     Threats ...................................................................................................................................................................32
6     Company Statement .............................................................................................................................. 34
7     History .................................................................................................................................................... 40
8     Sears Holdings Corporation - Key Employees .................................................................................... 42
9     Key Employee Biographies................................................................................................................... 43
10    Locations and Subsidiaries ...............................................................................................
								
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