These acknowledgements come as sales fell for the retailer, yet profits spiked during the quarter, which ended July 29. Same-store sales fell 3.8% year over year for the company, with the domestic Sears division dropping 6.3% and Kmart falling 0.6%. Total revenues dropped by $400 million, to $12.8 billion.
Executives note that sales at both divisions fell due to increased competition and lower transaction volumes. Home furnishings and lawn and garden took the biggest hits at Sears, though sales dropped among all categories. Kmart showed improvement in apparel, general merchandise, pharmacy and food, though home goods were on the decline.
Operating income for the retailer came in at $517 million for the quarter, up from $324 million during the same year-ago period. Kmart pulled in $92 million, Sears made $77 million, and the company was also helped by a one-time gain due to the settlement of Visa/MasterCard antitrust litigation and overall reduced expenses.
Sears Holdings has divested 69 stores since last year's second quarter bringing its portfolio to 3,800 units in North America. Forty-seven of the closures were Kmarts and the remainder were across Sears full-line, specialty and Canadian chains.
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