It’s not the first time Sears Holdings Corporation (NASDAQ:SHLD) has pushed the envelope by using Christmas in its advertising earlier than what would be considered seemly. For example, a few years ago, it created an online shop called “Christmas Lane” that appeared in July, but the limited nature of that move kept the rancor down.
Not so today. This week, Kmart really went beyond the pale by running TV ads promoting its Christmas layaway services just as kids were returning to school.
Retailers, though, are offering up cautious guidance for the back end of 2013. Consumers are apparently reluctant to go to excess with their spending, and that may cause them to follow Kmart’s lead in advancing holiday creep.
Macy’s, Inc. (NYSE:M) reported earnings that rose 7% year over year, but those were well below analyst expectations, leaving it to cut its outlook for the rest of the year. It lowered its fiscal 2013 earnings estimates to a range of $3.80 to $3.90 per share versus its prior guidance of $3.90 to $3.95 per share.
Similarly, Target Corporation (NYSE:TGT) reported earnings that were at the top of its guidance for the second quarter, even as comps were lower than anticipated, but now says its full-year adjusted profits will come in at the low end of the guidance it gave of $4.70 to $4.90 per share. Wal-Mart Stores, Inc. (NYSE:WMT) as well took the opportunity of its latest earnings report to scale back expectations, cutting its full-year outlook to $5.10 to $5.30, compared with the $5.20-to-$5.40-per-share view previously offered. As CEO Mike Duke noted, “The retail environment was challenging across all of our markets.”
Not that it’s any surprise, really, but Sears Holdings Corporation (NASDAQ:SHLD)’ own earnings report last quarter recorded further sales slippage, and it likely is at least partly responsible for its decision to beat everyone else out of the gate in hawking its Christmas service. Revenues fell by almost $600 million in the second quarter, or 6%, to $8.9 billion, while losses widened to $1.83 per share from $1.25 in the second quarter of 2012.
Although it makes sense to promote layaway services earlier than other programs, it’s not the first time Sears Holdings Corporation (NASDAQ:SHLD) has pushed one. It was among the first retailers to resurrect the concept several years ago after it had lain dormant as consumers turned to the Internet to do their shopping. But layaway programs found new cachet during the recession, and Sears Holdings Corporation (NASDAQ:SHLD) even added the innovative concept of combining it with online shopping.
While the discount retailer can sometimes nail its creativity with sharp, witty ads — like its well-executed “Ship My Pants” spot — this latest effort seems to push the envelope too far and risks alienating customers who are already upset by season creep. When even beer lovers fret over pumpkin ale appearing on store shelves before summer ends, Sears Holdings Corporation (NASDAQ:SHLD) forcing consumers to think about Christmas when they just dropped off Sally and Johnny for their first day of school is likely to create a silent night of returns rather than a winter wonderland of profits.
The article There’s No Holiday Cheer in Sears’ Early Christmas Push originally appeared on Fool.com and is written by Rich Duprey.
Fool contributor Rich Duprey has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Facebook.
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