Sears’ Profits Nearly Double in First Quarter

Sears, Roebuck & Co. said Thursday its first-quarter earnings nearly doubled as business improved in all its segments, especially its troubled retailing group.

Sears said it earned $202.7 million, nearly double the $106.3 million it reported a year earlier.

The results reflected a deferred-tax charge of $38.5 million in the Allstate Insurance Group.

For the three months, revenues totaled $12.88 billion, up 2% from 1990’s first quarter.

Sears Chairman and Chief Executive Edward A. Brennan said all business groups contributed to the improved performance.

He noted “particularly encouraging signs occurred in the Sears merchandise group.”

“We reduced expenses significantly in the quarter,” Brennan said in a statement. “We are beginning to see the early effects of our cost-reduction programs” and expect them to continue to improve the company’s performance.

Sears’ retail arm has instituted a drastic cost-slashing strategy in which it has fired thousands of employees, closed some catalogue distribution centers and taken a number of other belt-tightening measures.

The merchandise group narrowed its loss to $14.1 million for the first quarter, compared to a $37.4-million loss for the same period a year ago.

Retailing revenue declined 3% to $6.63 billion, “reflecting ongoing consumer concerns about the economy and the Middle East conflict,” the company said.

Many other retailers also have felt the impact of slumping consumer spending.