Sears Holdings Corp (SHLD) & Sears Canada Inc (SCC): A Turnaround Story You Need to Watch

Opening new, better-formatted stores and rehabilitating older stores will increase sales per square foot over time as well as top-line revenues. Management made a wise decision in downsizing employee count to more appropriately reflect the size and state of the company. Apparel and accessories have already posted year-over-year growth, and I believe that more segments will follow suit as the transformation occurs. Management is also initiating a 5% share buyback, which will create shareholder value if the stock price remains at its depressed levels for some time.

Just as in the United States, Sears Holdings Corp (NASDAQ:SHLD) is synonymous with appliances and hardware. The brand has suffered over the years, but this company has already proved in various ways that it is able to adapt and thrive. At such depressed prices, Sears Canada may be a steal for value-oriented investors who believe in the long-term improvement of the North American economy, as well as company management’s ability to steer this ship back upstream.

The article Sears Canada: A Turnaround Story You Need to Watch originally appeared on Fool.com is written by Michael Lewis.

Fool contributor Michael Lewis has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.