In 2011, Sears Holdings (SHLD) reported a loss of $500 million. It was the first time in at least thirty years that Sears had reported a loss. At the time, management and investment analysts reported the problem as “short term” and “fixable.” The analyst consensus called for a return to $200 million in annual profitability by 2014.
Then 2012 came and Sears reported a smaller $200 loss. This news encouraged analysts, and they raised 2014 guidance for a $275 million profit.
By the end of 2013, Sears reported its worst year ever at the time with a $700 million loss. Analysts pushed back their profitability projections to 2016, and tempered them back down to $200 million.