Sears reports net loss of almost $500 million

Hadley Malcolm, USA TODAY | USATODAY

Sears Holdings reported a net loss of almost $500 million versus $410 million last year, showing the retailer continues to struggle to turn business around.

Revenue was also down, though mostly due to closing several Sears and Kmart stores. Sales for stores open at least a year were down 3.1%, slightly better than a 3.7% decline in the second quarter.

The retailer continues to focus energy on its rewards program, Shop Your Way, which accounts for more than half of revenue for Sears and Kmart U.S. operations, CEO Lou D'Ambrosio said in a conference call Thursday afternoon.

"We're rapidly moving to a member-based business model," he said.

Shop Your Way members get access to personalized deals and earn points for purchases that can be redeemed at Sears, Kmart or Lands End, online or in stores. The company doesn't disclose how many Shop Your Way members it has, but spokesman Chris Brathwaite says it's in the "tens and tens of millions."

Online business for the company grew more than 20% in the quarter.

The Sears announcement comes on the heels of Target and Wal-Mart's third quarter earnings out Thursday morning. Both retailers reported increases in net income heading into Black Friday next week and the subsequent holiday shopping season.