Brian Sozzi: Sears' Quarterly Loss Was 'Ugly'

Sears Holdings Corp (NASDAQ: SHLD) reported its third-quarter results Thursday. The company reported a better-than-expected loss per share while revenue came in better than expected. However, same-store sales declined by 0.7 percent, worse than the 0.1 percent decline seen in the same quarter a year ago.

Sears saw sales of consumer electronics decline by an undisclosed amount in the third quarter and that the company is addressing the decline and plans on focusing on selling TVs and providing "connected solutions" for its clients.

While electronics is one of the many hurdles Sears will have to overcome, Sears' management is focusing on selling new technologies, including the 4K TV category.

Brian Sozzi of Belus Capital Advisors commented in an article on The Street that "any attempt by Sears at transforming its electronic business may be stunted by" Best Buy Co Inc (NYSE: BBY). The retail analyst adds that Best Buy has already heavily invested in extensive employee training and has solid relationships with TV manufacturers that may be hard for Sears to beat.

Sears has already announced the closure of 235 stores in 2014 and the company may be forced to close hundreds more over the next few years.

Sozzi also notes that weak sales of food and household items continues to "plague" Kmart. In fact, Kmart has experienced declines in its grocery and household products for more than a year.

Kmart's woes extends beyond its food and household sales. Sozzi notes that despite 133 fewer Kmart stores in operation during the quarter, the brand still produced an operating loss of $149 million, or $97 million when adjusted for one-time expenses.