Sears: Turns Profit, Shares Spike

Returns to profitability after sale of U.S. and Canadian stores

   

Sears: Turns Profit, Shares Spike

Sears (NASDAQ:SHLD) reported that it earned $189 million during its fiscal first quarter, compared to a loss of $170 million during the same period last year.

The market liked the results. Sears shares jumped more than 11% in early Thursday trading, hitting $56.

sears close up 630 200x200 Sears: Turns Profit, Shares Spike
Sears’ Hometown and Outlet Locations a Boon for Lampert

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.


Article printed from InvestorPlace Media, http://investorplace.com/2012/05/sears-turns-profit-shares-spike/.

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