Why Sears Holdings Stock Plunged 26% in November
Shares of Sears Holdings (NASDAQ: SHLD) plummeted 26% last month, according to data provided by S&P Global Market Intelligence, as the dying retailer crept closer to oblivion.
Early in November, reports emerged about how suppliers were cutting Sears' credit lines, shortening its payment terms, and even reducing merchandise shipments. These are the type of actions manufacturers take when they're concerned about a retailer's ability to survive. They can also accelerate a company's descent into bankruptcy by pressuring its liquidity, as well as bringing about inventory shortages and sales declines.
Later in the month, Sears' third-quarter results showed just how precarious its situation has become. Revenue tumbled 27%, driven by store closures and a 15% plunge in comparable store sales. Worse still, Sears generated a net loss of $558 million, or $5.19 per share.
Source: Fool.com
