Sears Posted Its First Profit Since 2015. Things Are Still Dire.
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Sears Holdings posted its first quarterly profit since 2015, bringing a ray of optimism to a retail chain struggling to regain its relevance.
First-quarter net income amounted to $244 million, compared with a loss of $471 million a year earlier. The gain reflects efforts by CEO Eddie Lampert to sell assets and raise cash. But its main business — running the Sears and Kmart department stores — still struggled in the latest quarter: When excluding one-time items, the company posted a loss.
Investors took the results as a sign that Lampert’s turnaround bid is making some headway. The 54-year-old hedge fund manager, who is also Sears’s largest investor, has scrambled to wring money from the sprawling chain’s real estate and close stores. On Tuesday, the company made a deal that pushed the due date for $400 million in debt from July to January. It also offloaded some of its pension obligations.
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