Sears Posts Narrower Q1 Loss, Shares Rise

reported a narrower loss for its first quarter. However, the company posted a decline in its quarterly revenue. The Hoffman Estates, Illinois-based company posted a quarterly net loss of $303 million, or $2.85 per share, versus a year-ago loss of $402 million, or $3.79 per share. Excluding one-time items, the company lost $2 per share. Its revenue slipped 25.3 percent to $5.88 billion. However, analysts were expecting a loss of $2.59 per share on revenue of $6.08 billion. The average estimate among 4 Estimize users was for a loss of $1.26 per share and revenue of $2.54 billion. Comparable stores declined 10.9 percent in the quarter. Sears domestic comparable store sales slipped 7.0 percent in the latest quarter, while Kmart domestic comparable store sales dipped 14.5 percent. Its domestic adjusted EBITDA came in at $(141) million in the quarter, versus $(178) million, in the year-ago quarter. Kmart's gross margin rate rose 150 basis points year-over-year in the first quarter, while Sears domestic's gross margin rate widened 350 basis points. Its selling and administrative expenses shrank to $1.68 billion versus $2.09 billion. Sears, which plans to spin off around 235 Sears and Kmart stores into a REIT, projects proceeds of $2.6 billion from the transaction. The company is targeting to launch the rights offering on Friday. Sears shares gained 2.85 percent to $41.90 in the after-hours trading session.