The market liked the results. Sears shares jumped more than 11% in early Thursday trading, hitting $56.
The company sold stores in the U.S. and Canada, realizing a $233 million gain on those sales during the quarter.
Adjusted EPS showed a loss of 31 cents from continuing operations. That exceeded the forecast of analysts who predicted a loss of 67 cents, the Associated Press noted.
During the quarter, Sears saw revenue decline 3% to $9.27 billion, narrowly topping analysts’ estimate of $9.26 billion.
The company said revenue had been negatively affected by foreign currency exchange rates and the reduction of stores.
Same-store revenue in the U.S. fell 1% at Sears and 1.6% at Kmart stores.
Sears also announced plans to partially spin off its Sears Canada business, dropping its stake in the unit from 95% to 51%.
The company noted that it had pared its debt down from $3.5 billion to $3.2 billion at the end of the first quarter.