Why Sears Holdings Stock Bounced Today

Shares of Sears Holdings (NASDAQ: SHLD) were moving higher today after the ailing retailer posted third-quarter results that weren't as bad as expected. The company managed to narrow its net loss from $748 million a year ago to $558 million as it closed stores, helping to eliminate bloated operating expenses. As a result, the stock opened up 27.6%, but the gains had moderated to 5% by 11:08 a.m. EST.

Image source: Sears.

While the narrower loss may be a sign that the company is moving in the right direction, the underlying performance was still atrocious. Overall comparable sales fell 15.3%, with Sears declining 17% and Kmart losing 13%. Revenue slid 27.2% to $3.66 billion, which was ahead of estimates at $3.34 billion. On the bottom line, its adjusted loss per share improved from -$3.11 to -$2.64, which also beat expectations at -$4.46.

Source: Fool.com