Sears reports wider loss, sales drop

Sears Holdings reported a wider loss in the first quarter as the retailer controlled by hedge-fund manager Edward Lampert continued to struggle to turnaround its business.

The parent company of Kmart and Sears said it lost $402 million, or $3.79 per share, for the period ended May 3. That compares with a loss of $279 million, or $2.63 per share, in the same period a year ago

Excluding certain items, the retailer lost $2.24 per share. That was worse than the loss of $1.91 a share expected by analysts, according to FactSet.

Revenue fell 6.8% to $7.88 billion, which was better than the $7.72 billion analysts expected.

Shares plunged 7% in pre-market trading to $33.90.

Best Growth Companies To Invest In Right Now

The retailer has been struggling to turn around its flagging business as rivals have been drawing away its customers. It has focused on reducing costs, cutting inventory, closing stores and selling or spinning off some assets.

Sears recently said it is considering selling its Canadian operations and also spun off its Lands' End unit as a separate public company.

Edward Lampert took over as CEO in May 2013, replacing Louis D'Ambrosio.