NEW YORK — Sears Holdings Corp. posted a profit in the first quarter, reversing a year-ago loss, on sales that soared 58 percent due to the inclusion of sales from its Sears stores.
Earnings also were bolstered by the company’s efforts to reduce expenses at both Kmart and Sears Domestic.
On Thursday the company reported first-quarter net income of $180 million, or $1.14 a diluted share, which is against a loss of $9 million, or 7 cents, in the same period last year. The increased earnings beat the average analyst estimate of 64 cents a share for the quarter.
Revenues rose to $12 billion from $7.6 billion during the same quarter last year. The company attributed the increase to the inclusion of Sears stores for the entire quarterly period ended April 29. The prior year’s numbers did not include Sears results for the whole period because the retailer was acquired by Kmart Holding Corp. on March 24, 2005.
“While we’re pleased with the progress we’re making, we continue to look for ways to be more efficient and effective in our business,” said Aylwin Lewis, chief executive officer and president of the company, in a statement. “With a goal of dramatically improving the customer experience at all of Sears Holdings’ touch points, we are starting with the basic and working with our associates to drive the culture shift necessary to become a great retail company.”
Same-store sales in the first quarter declined 4.8 percent, with Sears Domestic comps declining 8.4 percent and Kmart’s dropping 0.2 percent. The decline at Sears was attributed to softness across all categories and formats except home appliances. The drop at Kmart was attributed to lower transaction volume in the home goods categories, according to the company.
Separately, Sears Holdings announced on Thursday that it reached a $215 million settlement in a class-action securities litigation filed over statements made by the company regarding its credit card business. According to the company, the settlement will not have an effect on earnings and is still subject to judicial approval. The initial action was filed in federal court in Illinois on behalf of purchasers of Sears, Roebuck & Co. securities during the period between Oct. 24, 2001, and Oct. 14, 2002. Sears, Roebuck sold its credit card business in November 2003.“As we move forward, Sears Holdings believes it is important to put this matter behind us so that we can continue to focus on building a great retail company,” Lewis said in a statement.
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews
“Stranger Things” is getting a new cast member for season 2. Meet @sadiesink_, the 15-year-old who will be joining the Netflix series for its new season. You may recognize her from “The Glass Castle” with Brie Larson and Woody Harrelson, but the Texas native’s next role goes in an entirely different direction. She describes her character, Max, as “a rough and tumble skater girl [who] becomes friends with the boys at school.” The second season debuts on October 27. (📷: @jgreenery) #wwdeye
Amid the Harvey Weinstein controversy, there’s another sector that’s being put under the spotlight for sexual abuse: the modeling industry. While rumors about abuse and sexual harassment of female and male models — and the photographers, agents and others who perpetrated it — have circulated within the fashion world for years, model @cameronrussell started posting stories from models on Instagram last week about abusive situations they’ve encountered — from sexual harassment and molestation to attempted rape. Over 75 have weighed in so far. Read more on WWD.com. Link in bio. #wwdnews
To celebrate its 16th anniversary, @dylanscandybar tapped designers and celebrities to create mosaics out of candy. The mosaics will be auctioned off to support the philanthropic cause of each participant’s choice. Pictured here is the mural created by @aliceandolivia's Stacey Bendet. For a first look at some of the other artwork being unveiled tonight, go to WWD.com. #wwdeye
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye