The retailer's stock falls 2% on the Q4 earnings report, indicating investors are skeptical about its turnaround strategy.
The electronics retailer blamed its filing on the "surprisingly poor performance of mobility sales" despite its co-branded stores with Sprint.
The retailer's shift to a new business model "will present headwinds to our sales and profit performance in the short term."
The outlook for sales growth, however, remains weak, with comp sales expected to decline between 2.0% and 3.0% this year.
The charge to cover possible future claims was larger than analysts expected and led to a net loss of $3.04 billion in the fourth quarter.
The retailer "still has a long runway ahead of it before it will realize the benefits" of its turnaround strategy, analysts say.
“While Sears was once a titan of U.S. retail, it now looks set to sink,” one analyst predicts.
The sale to Hilco Capital is part of Staples' strategy of focusing on North American operations amid dwindling demand for traditional office products.
The company has a $66 million offer for the intellectual property rights of its brand and other assets, but the fate of its stores is unclear.
The 0.8% drop in Q3 follows a 6.4% jump a year ago but the retailer is confident its new appliance departments will improve sales during the holiday…