Sears Holdings Corp. (NASDAQ: SHLD) reported third-quarter 2014 results before markets opened on Thursday. The company posted an adjusted diluted earnings per share (EPS) loss of $2.71 on revenues of $7.2 billion. In the same quarter a year ago, Sears posted an adjusted EPS loss of $2.09 on revenues of $8.3 billion. The consensus estimates from Thomson Reuters called for an EPS loss of $3.31 on revenues of $6.88 billion.

The GAAP loss for the quarter totals $5.15 per share, compared with a GAAP loss last year of $5.03. The adjusted loss includes a loss of $0.41 per share on the sale of Canadian assets and a loss of $0.25 per share on the sale of domestic assets. A tax benefit of $1.69 and $0.81 in non-consolidated earnings per share from Sears Canada provided the bulk of the positive adjustments to the quarter’s results.

U.S. same-store sales fell 0.1% in the third quarter, with sales up 0.5% at Kmart stores and down 0.7% at Sears stores. Excluding electronics, grocery and household items, Kmart stores would have shown a same-store sales increase of 2.8%, and Sears stores would have posted a gain of 1.0% if electronics are not included. Corporate same-store sales would have risen 1.8%, excluding electronics.

In a November 7 filing with the U.S. Securities and Exchange Commission, Sears published its same-store sales figures and estimated a domestic adjusted EBITDA loss in a range of $275 million to $325 million. In the event the adjusted EBITDA loss came in at $296 million, somewhat better than the loss of $310 million posted in the third quarter last year.

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Eddie Lampert, Sears’ chairman and CEO, said:

We remain intently focused on delivering an unparalleled integrated retail experience for our customers through Shop Your Way and above all, returning Sears Holdings to profitability. During the quarter, we unveiled or expanded several Integrated Retail customer initiatives, which helped drive online and multi-channel sales. Our members are responding to our transformation, and we are encouraged by the year-over-year domestic Adjusted EBITDA trends, which mark a positive departure from the prior six quarters. At the same time, we continue to enhance the Company’s capital structure and liquidity to support our transformation into an integrated membership-focused company.

Sears attributed the revenue decline to a loss of $384 million in revenue from the Lands’ End stores Sears spun out in the first quarter of this year, a decline of $340 million in revenues from Sears and Kmart stores that have been closed and a $326 million drop related to its changed relationship with Sears Canada.

Sears did not provide guidance in its earnings press release, but the consensus estimate calls for a fourth-quarter EPS loss of $2.71 on sales of $8.89 billion. In the fourth quarter of last year, the company posted an EPS loss of $1.13 on sales of $10.59 billion. Both estimates for the current quarter seem optimistic given prior results.

Sears did not offer further details of its announced review of forming a real estate investment trust (REIT) to hold 200 to 300 stores that Sears would lease back and continue to operate.

The company’s operating loss in the third quarter was $490 million, compared with $497 million in the same quarter a year ago. All the financial machinations at Sears don’t change the fact that it can’t sell stuff at a profit.

Perhaps the best news for the company is that it has pushed out to 2018 the maturity dates on more than $2 billion in debt. That will help its cash flow, but not its revenues.

Sears traded down about 0.1% in Thursday’s premarket session, at $34.21 in a 52-week range of $24.10 to $49.34. Shares closed at $34.25 on Wednesday. The price target from Thomson Reuters is $16.00, from just one analyst.

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