Sears revenue continues decline amid tough landscape

NEW YORK >> Sears’ extended decline in sales persisted during the first quarter and the storied retailer vowed to make additional spending cuts to offset its slowing business.

The company’s operating loss widened to $222 million, or $2.15 per share, on weak sales. Sears Holdings has been closing stores and selling brands long affiliated with Sears, including Craftsman. A year ago the company reported a loss of $181 million.

Still, the company registered a profit of $244 million, or $2.28 per share, counting a gain from the sale of assets. Its shares surged $1.63, or 22 percent, to $9.10 in trading Thursday.

Revenue fell 20 percent, to $4.3 billion, and sales at established stores fell 11.9 percent.

In March, Sears Holdings Corp. said there is “substantial doubt” it could continue as a viable concern, with intense pressure coming from companies like WalMart, Target and Amazon.com. It has insisted that its actions to turn around its business should help reduce that risk.

Asset sales have bought the retailer time, but it said recently that pension agreements may prevent the sale of more businesses, potentially leading to a shortfall in funding.

Sears, which employs 140,000 people, announced in January that it would close 108 additional Kmart and 42 more Sears locations, and unveiled yet another restructuring plan in February. The company has lost more than $10.4 billion since 2011, the last year that it made a profit.

“While this was certainly a challenging quarter for our company, it was also one that clearly demonstrated our commitment to return Sears Holdings to solid financial footing,” Chairman Eddie Lampert said in a company release. “We recognize that we need to accelerate our efforts to improve our operational performance and are moving decisively with our $1.25 billion restructuring program.”