Sears Holdings swings to profit in Q1, to spin off minority stake in Sears Canada
Hoffman Estates, Ill. -- Sears Holdings Corp. reported Thursday that it generated a profit of $189 million for the quarter ended April 28, after losing $170 million in the same period last year. The improvement was due largely to a $233-million gain from selling off some of its stores.
The retailer also announced that it plans to pursue a partial spinoff of its shares in Sears Canada, reducing its holdings in the Canadian company from a current 95% to about 51%. The transaction is expected to be completed this year, the company said, adding that it could further reduce its stake at a later date.
First-quarter revenue for Sears Holdings dipped 3% to $9.27 billion, beating analysts’ expected $9.26 billion. Same-store sales slipped 1.6% at both Sears and Kmart stores in the United States.