Shoppers walk toward a Sears store in Peoria, Ill. Sears reported a quarterly loss of $573 million. Bloomberg
Sears Holdings Corp. , the struggling store operator that was once a prominent fixture of the U.S. retail landscape, indicated more cost cuts and changes are on the way as it posted a $573 million quarterly loss amid declining revenue and margins.
Sears, which has shed businesses lately in a bid to refocus its operations, said slumping electronics sales continued to weigh on results, as did margin-squeezing costs from promotions.
Sears is now relying on its membership program and online business to drive sales while its turnaround grinds on.
Sears said Thursday that it may close more stores this year in addition to the 130 closures it has already announced. The company has trimmed its store count to 1,870 over the past 12 months, closing 166 locations in the process.
Sears also said it continues to evaluate spinning off its auto-center business and divesting itself of its 51% stake in Sears Canada Inc. Earlier this year, the company, which is controlled by hedge-fund billionaire Edward Lampert, spun off its Lands' End apparel unit.
"We have continued to show progress in our transformation, as demonstrated by our year-over-year increase in online and multi-channel sales, and with our member sales now representing 73% of eligible sales, " Mr. Lampert said in a news release. "However, our second-quarter earnings are unacceptable and we are taking steps to address our performance on several levels."

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Mr. Lampert also said Sears would pursue cost cuts, more investments in its "Shop Your Way" and integrated retail customer programs, and "rationalizing our physical footprint and improving pricing and promotions."
Sears posted a loss for the quarter ended Aug. 2 of $573 million, or $5.39 a share, compared with a loss of $194 million, or $1.83 a share, a year earlier. Excluding costs of closing stores, certain tax matters and other items, the company's per-share loss was $2.87.
Revenue fell 9.7% to $8.01 billion, while gross margin slipped to 21.7% from 24.6%.
Sales at existing locations edged down 0.8% at domestic stores. Sales rose 0.1% at its namesake locations, but Sears noted they would have grown 1.6% excluding the impact of consumer electronics. The company's Kmart stores suffered a 1.7% decline, dragged down by electronics and by its grocery and household-goods business.