Shares of Sears Holdings (SHLD) plunged in morning trading after the company again posted a loss for its third quarter. Sears said it will continue to close its less lucrative stores in order to help restore profitability to the company, but an executive noted that he "cannot guarantee" when profitability will occur.

QUARTERLY EARNINGS: Sears this morning reported an adjusted loss per share for the third quarter of ($3.11) compared to a loss of ($2.86) per share in the year-ago period. Revenue for the quarter was $5.03B, a decline from $5.75B in the year-ago quarter. One analyst covering the stock was expecting a loss per share of ($4.06) and revenue of $4.95B. Sears said in a statement that the year-over-year decline in revenues was primarily driven by having fewer Kmart and Sears Full-line stores in operation. Same-store sales for the quarter fell 7.4%, including a 10% decrease at Sears stores and a 4.4% decrease at Kmart stores. Sears, which has been selling off stores and assets in order to regain profitability, said its cash and equivalents fell to $258M.

TAKING ACTIONS TO RESTORE PROFITABILITY: Sears Chairman and CEO Edward Lampert said in a statement that the company is "fully committed" to restoring profitability and is taking actions like closing unprofitable stores, reducing space in its stores, reducing investments in underperforming categories and improving gross margin performance. Lampert also commented that he understands concerns regarding Sears' continued operating losses, stating that "While many observers have acknowledged the significant asset base of our company, we understand the concerns related to our operating performance and are committed to transforming our company through our Shop Your Way membership program and our Integrated Retail investments." "At the same time, we will continue to explore options to recognize the inherent asset value in a manner that complements our transformation," Lampert said.

On a pre-recorded conference call, CFO Jason Hollar said the company "cannot guarantee when we will return to profitability, but it is our intention to do so as soon as possible." Hollar also said "We have fallen short on our own time-table for achieving the profitability that we believe the company is capable of generating. With that said, the team remains fully committed to restoring profitability to our company and creating meaningful value." Regarding speculation of a potential bankruptcy for Sears, Hollar reiterated that Sears has a "rich asset base" and said "We believe that our liquidity needs will be satisfied through the foreseeable future using the levers available to us through our portfolio of assets."

ALTERNATIVES FOR KENMORE, CRAFTSMAN: The retailer, which said in May that it was exploring strategic alternatives for its Kenmore, Craftsman and DieHard brands, as well as its Sears Home Services business, said it is still evaluating opportunities including potential partnerships "or other transactions." On the pre-recorded call, CFO Hollar said Sears has had strategic parties "express interest" in these brands.

WHAT'S NOTABLE: Sears and others have been faced with competition from other retailers like Wal-Mart (WMT), as well as an increase in online shopping on Amazon.com (AMZN). According to a recent Reuters report, in large cities like New York and Chicago, local shoppers said stores weren't as crowded as in previous years on Black Friday. Business Insider said last month that "at least half a dozen suppliers have significantly reduced product shipments to Sears over fears of a bankruptcy." The Wall Street Journal said in October that toy maker Jakks Pacific (JAKK) suspended sales of its products to Kmart over concerns about its financial strength. Sears' Hollar said the company has had a "longstanding relationship with Jakks." Also in October, Sears rival and tool maker Stanley Black & Decker (SWK) said it was buying Newell Brands' (NWL) tools business for $1.95B.

PRICE ACTION: Sears is down about 1% in morning trading to $12.03. Shares are down over 40% year-to-date.