Hoffman Estates, Ill. -- Sears Hometown and Outlet Stores Inc. reported a 27% drop in first-quarter earnings amid a cool spring throughout much of the country and rising costs. But the company, a spinoff from Sears Holdings Corp., pointed to improving signs in late spring.
Sears Hometown earned $15 million in the quarter that ended May 4, compared with $20.6 million in the year ago period.
Revenue dropped 3% to $601.1 million. Same-store sales fell 5%.