Sears Swings Back into the Black

Although the retail giant posted a $56 million loss just a year ago, Sears has now posted a $26 million profit. This revelation quickly increased Sears’ shares, which jumped 17 percent after hours.

Expectedly, Sears’ profit does not come from an increase in sales. In the last three months, revenue dropped to $10.06 billion, a 9 percent drop from where Sears had been before. However, the decision on the part of Sears to cut advertising costs and payrolls have allowed the company to turn a sizable profit.

Sears also announced that it will provide $4.1 billion in financing until March of next year and another $2.4 billion for 27 months after that. This means that the company is amending and extending its credit facility, a move that seems to imply optimism on the part of Sears.

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