Mar 15, 2018
Sears reports lower-than-expected fall in comparable sales
Mar 15, 2018
Sears Holdings Corp reported a smaller-than-expected decline in comparable-store sales in a surprise fourth-quarter earnings announcement, sending its shares up 9 percent on Wednesday.
Sears said its comparable-store sales fell 15.6 percent in the quarter ended Feb. 3. Analysts on average had expected a 16.4 percent decline, according to Thomson Reuters I/B/E/S.
Sears has been in the midst of a turnaround plan that includes shuttering unprofitable stores and aggressively cutting costs.
Once the largest U.S. retailer, Sears last year flagged doubts that it could continue as a going concern, after struggling against the Amazon-fueled shift to online shopping.
Sears reported a net income of $182 million or $1.69 per share in the fourth quarter, compared with a loss of $607 million or $5.67 per share a year earlier. Results included a $470-million gain thanks to lower U.S. corporate tax rates.
Sears’ revenue fell 27.7 percent to $4.38 billion, as it operated fewer stores compared with a year earlier.
Shares of Hoffman Estates, Illinois-based Sears were up 9.1 percent at $2.64 in after-hours trading.
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