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.
Ross profit rises 21% in Q1, increases long-term store growth outlook
Pleasanton, Calif. — Ross Stores reported Thursday that net income for the first quarter surged 21% to $208.6 million, from $173 million in the same period last year.
Sales increased 14% to $2.4 billion, and same-store sales rose 9%.
“We believe that favorable weather across many of our markets also contributed to our above-plan performance," said Michael Balmuth, CEO, about the results.
Balmuth also said the retailer has increased its long-terms store potential to 2,500 U.S. locations, comprised of 2,000 Ross Dress for Less stores (up from a prior target of 1,500 stores) and 500 DD’s Discounts stores.
“We have the ability over time to more than double the size of our company domestically," he said.
Limited Brands Q1 profit slips, still beats Street
Columbus, Ohio — Limited Brands Inc. reported Wednesday a first-quarter profit of $124.6 million, compared with $165.2 million in the year-ago period. Results topped Wall Street estimates.
Net sales slipped to $2.15 billion from $2.22 billion, and same-store sales increased 7%.