Updated from 9:53 a.m. EDT
Sears, Roebuck
(S) - Get Report
reported earnings on Friday that exceeded Wall Street's expectations by 6 cents, largely because of results in the retail and credit businesses of one of the largest retailers in the U.S.
For the second quarter ended July 1, net income rose to $388 million, or $1.11 a diluted share, from $331 million, or 86 cents a share, a year earlier. The consensus estimate of analysts polled by
First Call/Thomson Financial
was $1.05 a share.
Revenue rose 5% to $10.08 billion from $9.64 billion a year ago.
Operating income from the Hoffman Estates, Ill.-based company's credit business rose 26.3% to $398 million on higher revenue, improved portfolio quality, securitization activity and cost reductions.
Meanwhile, operating income from its stores rose 9.8% to $190 million and revenue rose 4.2% to $7.3 million, mostly because of strong sales in hardline products such as appliances and electronics. Footwear, fine jewelry, cosmetics and fragrances also posted solid growth, the company said. However, apparel results were down.
The trend of increased sales mitigated by weakness in the apparel segment has occurred at other retailers as well. Last Friday, the
Commerce Department
released
retail sales figures that showed a stronger-than-expected gain in June industry-wide, with the largest drop recorded by clothing sales amidst increases in most other areas.
Shares of Sears finished down 2, or 6%, at 31 3/4.
