UPDATE: Sears Posts Narrower-Than-Expected Q3 Loss

Sears Holdings

reported a narrower-than-expected net loss for the third quarter. The Hoffman Estates, Illinois-based company posted a quarterly net loss of $548 million, or $5.15 per share, versus a year-ago loss of $534 million, or $5.03 per share. Excluding certain items, its adjusted loss came in at $2.71 per share for the quarter. Its revenue slipped to $7.21 billion from $8.27 billion. However, analysts were projecting earnings of $3.31 per share on revenue of $6.88 billion. Sears domestic same-store sales dropped 0.7% for the quarter, versus a 4% fall in the year-earlier quarter. Online and multi-channel sales gained around 9%. Kmart comparable store sales rose 0.5% in the quarter, versus a 2.1% drop in the year-ago quarter. Overall same-store sales declined 0.1% at domestic stores. Gross margin shrank $330 million to $1.6 billion. Sears posted an operating loss of $490 million, versus $497 million. Sears reported merchandise inventory on November 1 of $6.5 billion. The company had $1.5 billion available credit on December 3. "We remain intently focused on delivering an unparalleled integrated retail experience for our customers through Shop Your Way and above all, returning Sears Holdings to profitability," said Edward S. Lampert, Sears Holdings' Chairman and Chief Executive Officer. Sears shares rose 0.91% to close at $34.25 yesterday.