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Earnings Analysis: 
Sears Net Tops Expectations on Expenses Cuts
Author: Ivaylo Dagnev
123jump.com
Last Update: 9:43 AM EDT May 18 2006



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Sears Holdings Corp, department store operator, reported Q1 earnings of $1.14 a share, up from a loss of 7 cents a share a year-ago. Last year''s results incorporate a charge of $90 million related to a change in accounting for certain inventory costs. The company attributed the improvement in earnings to better profitability in both its Kmart and Sears Domestic operations, mainly due to reduced expenses.

 
Sears Holdings Corp, (SHLD: chart), topped analysts’ estimate for a profit of 65 cents a share. Total revenue advanced in the latest three months to $12 billion from $7.63 billion a year ago, primarily due to the inclusion of Sears operations for the full 13-week period. Sears Domestic same-store sales dropped 8.4% in Q1, while Kmart''s comparable stores slid 0.2%.

Finlay Enterprises, (FNLY: chart), fine jewelry retailer, reported a Q1 profit of a penny per share, up from a loss of 31 cents a share a year-ago. On a continuing operations basis, the company lost 59 cents a share in Q1, wider than a year-ago equivalent loss of 44 cents a share. Sales advanced to $192.1 million from $170.5 million in the same period a year ago. Finlay predicts a loss from continuing operations of 45 to 50 cents a share for Q2 with same-store sales advancing between 3% and 3.5%. With items, it expects a loss of 60 to 70 cents a share in Q2. For fiscal 2006, the company expects earnings from continuing operations of 75 to 90 cents a share.

Casual Male, (CMRG: chart), retailer, reported that Q1 net income advanced to 4 cents a share, from a loss of 5 cents a share in the year-earlier period. The company added hat revenue increased to $103 million from $97.3 million. The company topped analysts’ forecasts for earnings of 2 cents a share. ,

Stein Mart Inc, (SMRT: chart), retailer, reported Q1 net income dropped 55% to 17 cents a share, from 38 cents a share in the year-earlier period. The company added that sales dropped 4.2%. The company beat analyts’ forecast earnings of 15 cents a share.

Deb Shops Inc, (DEBS: chart), teen apparel retailer, reported that Q1 income declined to 19 cents a share, a penny down from a year ago. Sales in Q1 rose to $81.5 million from $77.5 million. The company affirmed its guidance for fiscal 2007 earnings of $1.85 to $1.90 a share.
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