They spin things saying the company made a profit. When the sale is the only reason they are showing a profit. Sales are down,they're closing more stores, money is still owed by July 7th, and a transformation that has yet to materialize. Things are worse than they are saying I believe. Store managers and the corporate people that do visit these stores want to act like everything is OK. Better than expected is usually a positive saying,but when it comes to Sears that mean you're still bad just not as bad as we thought.
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The reason for the "profit" this quarter was the sale of the Craftsman brand. Without it, the loss would have been 230 million this quarter. That is up from 200 million in Q1 of last year. Keep in mind that these losses are accelerating even after they have supposedly closed their worst performing stores. They are burning through cash at almost 190 million a month. Sales are continuing to drop by double digits. The suppliers are watching all this very closely. This is why after a temporary boost, the stock is back down to where it was before. No one knows exactly when this company will implode, but make no mistake, there was no good news in the results.
The money owed in July was deferred to January at higher interest and secured with additional real estate but they will run out of cash by end of June at their current pace of losses.