"That doesn't seem like a turnaround-type strategy that will generate the kind of sales gains that they need," Perkins said. "It's going to be a long, slow bleed as they close underperforming stores and continue to spin off assets."
(Read more: Sales at Sears, Kmart take holiday nosedive)
Following news of its disappointing holiday 2013 declines, as well as its forecast for a fourth-quarter loss of $2.35 to $3.39 a share, Sears shares fell 13 percent Friday. The stock is down 80 percent since hitting its all-time high of $180.64 in April 2007.
In fourth-quarter 2012, Kmart stores posted a same-store sales drop of 3.7 percent, while domestic Sears stores ticked 0.8 percent higher.
Sears has closed about 300 U.S. stores since 2010, and announced last month that it would spin off its Lands' End apparel business. The company, which has not made money since 2010, said Thursday it has total cash of about $1 billion and availability under its credit facilities of $2.3 billion.
(Read more: Retailers must end consumer addiction to discounts)
Belus Capital Advisors analyst Brian Sozzi has been documenting Sears decline since October, using his Twitter feed and blog to show photographs of disorganized and improperly inventoried stores, and pointing out its increasing yields on company debt.
Sears went on the defensive, saying that Sozzi used "cheap shots" in his comments.