The retailer said sales dropped to $9.47 billion, down 6.6% from 2011. That fell short of the $9.63 billion in sales that Wall Street had anticipated, Reuters noted. Adjusted EPS for the quarter showed a loss of 86 cents, matching analysts’ estimates.
The lower-than-expected loss cheered investors. Shares of Sears jumped more than 5% on the news.
The company noted that same-store U.S. sales dropped 3.7% during the quarter. Sales fell at both Sears-branded outlets and Kmart stores, by 2.9% and 4.7%, respectively.
Sears has been hurt by competition from other discount retailers including Wal-Mart (NYSE:WMT), Home Depot (NYSE:HD), Target (NYSE:TGT) and Kohl’s (NYSE:KSS), all of which posted second-quarter profits that beat Wall Street forecasts.