December 8, 2016 / 12:33 PM / a year ago

BRIEF-Sears holdings CFO in presentation - "We cannot guarantee when we will return to profitability"

Dec 8 (Reuters) - Sears Holdings Corp

* CFO in presentation - over the past several years, have significantly reduced the size of our consumer electronics business

* Since inception, have invested over $2 billion in shop your way membership program in terms of points redeemed by members

* Q3 gross margin drop due to declining performance in apparel and home appliance, more markdowns; including increase in Shop Your Way points expense

* Reliance on vendor funding and their exposure to sears holdings has been reduced significantly

* CFO- “believe that we have the resources to fund our transformation and meet all of our financial obligations”

* CFO- will continue to accelerate closing of underperforming stores and reduce investment in underperforming categories

* CFO in presentation - “We cannot guarantee when we will return to profitability”

* CFO - in the past quarter, have reduced the size of pharmacy business which operates in many Kmart stores

* Reducing investment in lower margin categories, improved sourcing and pricing initiatives designed to drive more profit

* CFO- “ have ongoing discussions on our liquidity and financial position with vendor community, and 3rd parties that offer credit protection to our vendors”

* CFO- “we have a significant asset base which we believe could be monetized to generate liquidity”

* CFO- “have over 400 owned stores and large portfolio of leases at below market rents that can be monetized to support transformation”

* CFO- we continuously evaluate our store base and expect that we will continue to close unprofitable stores Further company coverage:

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