CHICAGO, May 21 (Reuters) - Sears Holdings Corp posted a surprise first-quarter profit against a year-ago loss, as it cut advertising and jobs to offset lower sales, and said it extended the maturity of some debt, sending its shares up 21 percent.
The owner of Sears department stores and Kmart discount stores agreed with bankers to extend the maturity of $2.4 billion of its credit facility until June 22, 2012.
Like many retailers, especially those that run big department stores, Sears, which is controlled by hedge fund manager Edward Lampers, has seen sales hit by the recession.
Sales at stores open at least a year fell 7.4 percent, with a drop of 11.7 percent at Sears stores and 2.1 percent at Kmart.
Sears had a profit of $34 million, compared with a loss of $36 million a year earlier. Earnings attributable to common shareholders were 21 cents a share, compared with a loss of 43 cents a year earlier.
Excluding one-time gains and charges, earnings were 38 cents a share. Analysts on average forecast a loss of 88 cents a share, according to Reuters Estimates.
Total revenue fell to $10.1 billion in the quarter from $11.1 billion a year earlier.
Sears had cash balances of $1.2 billion on May 2, compared with $1.3 billion on Jan. 31.
Merchandise inventories were about $9.5 billion at May 2, compared to $10.3 billion at May 3, 2008, the company said.
The company's shares, which closed at $50.19 in the regular session, traded at $60.89 in after-hours trading.
(Reporting by Brad Dorfman; Editing Bernard Orr)
((bradley.dorfman@thomsonreuters.com; +1 312 408 8133; Reuters Messaging: bradley.dorfman.reuters.com@reuters.net; )) Keywords: SEARS/ (See http://blogs.reuters.com/shop- talk/ for Shop Talk -- Reuters' retail and consumer blog) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The owner of Sears department stores and Kmart discount stores agreed with bankers to extend the maturity of $2.4 billion of its credit facility until June 22, 2012.
Like many retailers, especially those that run big department stores, Sears, which is controlled by hedge fund manager Edward Lampers, has seen sales hit by the recession.
Sales at stores open at least a year fell 7.4 percent, with a drop of 11.7 percent at Sears stores and 2.1 percent at Kmart.
Sears had a profit of $34 million, compared with a loss of $36 million a year earlier. Earnings attributable to common shareholders were 21 cents a share, compared with a loss of 43 cents a year earlier.
Excluding one-time gains and charges, earnings were 38 cents a share. Analysts on average forecast a loss of 88 cents a share, according to Reuters Estimates.
Total revenue fell to $10.1 billion in the quarter from $11.1 billion a year earlier.
Sears had cash balances of $1.2 billion on May 2, compared with $1.3 billion on Jan. 31.
Merchandise inventories were about $9.5 billion at May 2, compared to $10.3 billion at May 3, 2008, the company said.
The company's shares, which closed at $50.19 in the regular session, traded at $60.89 in after-hours trading.
(Reporting by Brad Dorfman; Editing Bernard Orr)
((bradley.dorfman@thomsonreuters.com; +1 312 408 8133; Reuters Messaging: bradley.dorfman.reuters.com@reuters.net; )) Keywords: SEARS/ (See http://blogs.reuters.com/shop- talk/ for Shop Talk -- Reuters' retail and consumer blog) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.