The tyranny of same-store sales is endless. This morning, Sears (SHLD) came out with its new liquidity figures and they were incredible. The company now has $1.8 billion in cash because of a spinoff of the proceeds from its Seritage Growth Properties (SRG), a considerable boost from the paltry amount it had in cash before this deal.
When you went through the release you realized that the Sears' balance sheet is much improved. In fact, it seems downright bountiful when you consider that the entire market cap of the company is $2 billion. That's right, $1.8 billion in cash with a market cap of $2 billion.
But just like Whole Foods (WFM) had to learn that the amount of money a store makes isn't as important as its comparable store sales, Sears had to learn that its liquidity isn't as important as the same-store sales: minus 6.9% for Kmart and minus 13.9% for Sears.
Now I hesitate to even put these two companies in the same paragraph. Whole Foods is immensely profitable. If you owned it all and you weren't public you would be making fortunes.
Sears, on the other hand, is just a black hole because of those same-store sales, regardless of the verbiage in the Sears release that tried to portray the capital raise as all important.
If Sears were doing as well as the company contends then it would just take itself private. But does management really want to own all of a company that has those kind of horrendous same-store sales?
But I don't think so.