Sears Shares Rise on Lower Q2 Loss

But the retailer's quarterly revenue missed analysts' estimates

   

Sears Shares Rise on Lower Q2 Loss

Sears Holdings (NASDAQ:SHLD) announced on Thursday that it lost $132 million during the second quarter, less than the $146 million it lost during the same period last year.

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.

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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.


Article printed from InvestorPlace Media, http://investorplace.com/2012/08/sears-shares-rise-on-lower-q2-loss/.

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