Investing.com - Sears Holdings Corporation's (NASDAQ:SHLD) shares turned lower late Thursday, erasing their earlier session gains as investors started to take a more critical look at the retailers attempt to improve its finances. Sears released its latest quarterly results earlier Thursday.
Sears has been struggling for some time, but the company has managed to hold with management embarking on a range of liquidity measures. So far this year the company has sold assets, issued new debt, paid down existing debt and increased borrowing as the company re-strategizes to survive a different retail environment.
The company's efforts appear to be paying off a bit, with Sears topping expectations in its recent quarter. The retailer announced that its quarterly revenue plunged 22.8% year-over-year to $4.37 billion, but even with the steep drop, it surpassed expectations by $160 million. An 11.5% drop in same store sales contributed to the revenue dive.
Sears posted an adjusted loss per share $1.16, much narrower than the $2.48 per share loss analysts were expecting.
Shares rallied up to 8% in the aftermath of the earnings release but then retreated, eventually falling into negative territory. Sears closed Thursday's session down 0.23%.
The company commented that the retail environment remained challenging with continued softness in store traffic and elevated price competition. Quarterly Kmart comparable store sales decreased 9.4%. The company added that it will close 28 Kmart stores later in the year. The company will continue to explore opportunities for Kenmore and DieHard brands, and Sears home services and Sears auto center businesses.