Sears Holdings Corp. is looking toward its substantial real estate portfolio, including a Council Bluffs store, to offset its weak financial performance.
The operator of Kmart, Sears and Land's End said Thursday it will spin off some stores and sell others as it seeks to regain profitability.
The company said it will sell 11 Sears stores in nine states, including its store at Mall of the Bluffs.
The stores will be sold for a total of $270 million to General Growth Properties, which owns the malls in which the stores are located. The deals will close within two months.
GGP said in a statement that it sees the acquisition as an opportunity to get new tenants for the spaces or for redevelopment.
Sears will continue to operate the stores into 2013. Final closing dates will be announced later this year.
The chain has faced slumping sales as consumers turn elsewhere for goods such as clothes and appliances.
The company also will spin off its smaller Hometown and Outlet stores and some hardware stores in a deal expected to raise an additional $400 million to $500 million.
The plans follow news in December that the company would close at least 100 stores.
Meanwhile, Sears Holdings reported a $2.4 billion loss in the fourth quarter as revenue fell 4 percent to $12.48 billion. Adjusted earnings totaled 54 cents per share, below analyst expectations.
Target Corp. reported a 5.2 percent drop in earnings for the fourth quarter, as big discounts to get shoppers to buy during the holiday season eroded profits.
The discounter, however, offered a full-year profit outlook that was above Wall Street estimates.
Target said Thursday that gross profit margin slipped to 28.4 percent in the fourth quarter, down from 28.7 percent in the year-ago period.
The company reported net income of $981 million, or $1.45 per share, in the three months ended Jan. 28. That compares with $1.04 billion, or $1.45 per share, a year ago.
Angie's List Inc., a consumer-review website with more than a million members, surged after reporting fourth-quarter revenue that topped analysts' estimates as the cost of acquiring customers declined.
The company, which provides reviews of plumbers, electricians and other service providers, said the cost of adding subscribers fell from $60 to $51 per customer during the period from a year earlier. Total paid memberships were 1.07 million on Dec. 31, up 78 percent, Angie's List said.
In its first earnings report as a public company, Angie's List said that fourth-quarter revenue increased 70 percent to $27.4 million, topping analysts' estimates of $25.4 million. The company forecast first-quarter revenue of $29 million to $30 million. Analysts had estimated $28.3 million.
The fourth-quarter loss narrowed from a year earlier to $5.87 million, or 14 cents a share, from $8.24 million, or 30 cents a share.
— From wire reports