Sears Holdings on Thursday reported the smallest decline in quarterly same-store sales in more than three years.
Sales at Sears and Kmart stores open for at least 12 months were down 3.9 percent during the second quarter, compared with a decline of 11.9 percent in the prior period.
The company was initially expected to report earnings before the market open but postponed the results until later in the afternoon.
Its shares were up more than 7 percent in after-hours trading on the news.
"While we are encouraged by the improved comparable stores sales trend we experienced in the second quarter, and the positive comparable store sales of 3.0% and 2.5% achieved in the months of July and August, respectively, we have yet to achieve our goal of returning the Company to profitability," CEO Eddie Lampert said in a statement.
The department store chain just last month announced it would be closing more than 40 additional locations across the U.S. as it continues to trim its physical footprint. It's struggled with declining sales at a high clip for numerous quarters now, while many of Sears' peers — including Macy's, Kohl's and Nordstrom — have benefited of late from a stronger economy in the U.S. with record-low unemployment, putting more dollars back into shoppers' pockets.
As it shutters stores, Sears also earlier this summer let go roughly 200 workers at its corporate offices.
The company has meanwhile been evaluating a bid from its CEO Lampert's hedge fund, ESL Investments, to buy parts of Sears Holdings. ESL has most recently offered to buy the troubled retailer's Kenmore appliance division for $400 million. There's also an offer on the table for the fund to buy Sears' Home Improvement business for as much as $80 million in cash. A special committee has been reviewing the deal.
Lampert said in May about getting this deal done that "speed and certainty here are critical" to meet Sears' "liquidity needs."
Sears has watched its shares fall more than 80 percent from a year ago, trading around $1.21 and bringing the retailer's market cap to less than $150 million. When the company recently said it was taking its tire installation service — in partnership with Amazon — nationwide, its shares shot up more than 20 percent. But the stock is still dangerously close to falling below $1 and in August hit an all-time low of $1.07.
This is a developing story. Please check back for updates.
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