The Investment Analyst Community Failed You On Sears Stock

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.

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