Sears Shares Rise on Lower Q2 Loss

by Christopher Freeburn | August 16, 2012 10:59 am

Sears Shares Rise on Lower Q2 Loss

Sears Holdings (NASDAQ:SHLD[1]) announced on Thursday that it lost $132 million during the second quarter[2], 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.

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[3]), Home Depot (NYSE:HD[4]), Target (NYSE:TGT[5]) and Kohl’s (NYSE:KSS[6]), all of which posted second-quarter profits that beat Wall Street forecasts.

Endnotes:
  1. SHLD: http://studio-5.financialcontent.com/investplace/quote?Symbol=SHLD
  2. during the second quarter: http://in.reuters.com/article/2012/08/16/sears-results-idINL2E8JG19120120816
  3. WMT: http://studio-5.financialcontent.com/investplace/quote?Symbol=WMT
  4. HD: http://studio-5.financialcontent.com/investplace/quote?Symbol=HD
  5. TGT: http://studio-5.financialcontent.com/investplace/quote?Symbol=TGT
  6. KSS: http://studio-5.financialcontent.com/investplace/quote?Symbol=KSS

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