Sears profit jumps 27% on improved clothing sales

Bloomberg

Sears Holdings Corp. said fourth-quarter profit climbed 27 per cent, exceeding analysts' estimates, on increased clothing sales. Profit rose to $820-million (U.S.), or $5.33 a share, from $648-million, or $4.03, a year earlier, the Hoffman Estates, Ill.-based company said yesterday. Revenue climbed 1.3 per cent to $16.3-billion. Chairman Edward Lampert has boosted earnings at the expense of sales by limiting discounts and closing locations. Margins improved on higher earnings from its home services unit and better apparel sales at both Kmart and Sears stores. Sears had $3.3-billion in cash, excluding its stake in Sears Canada Inc., as of Feb. 3. Sales at stores open at least a year fell 3.1 per cent in the quarter. For the year, same-store sales declined 3.7 per cent. SHLD (Nasdaq) fell $4.18 to $176.07.