Sears’ Quarterly Earnings Triple, Top $1 Billion : Retailing: Improved store sales and selloff of stock in Allstate insurance subsidiary are credited for the rebound.

Sears, Roebuck & Co. reported Tuesday that its second-quarter earnings tripled to $1.01 billion, crediting improved retail sales and the sale of stock in its Allstate insurance subsidiary.

The net profit, equal to $2.63 a share, compares to earnings of $325.5 million, or 85 cents a share, in the year-earlier period.

Revenue for the quarter rose 5.6% to $12.1 billion, compared to $11.5 billion in the same period a year ago. The news sent the stock climbing $4.125 to close at $50.125 on the New York Stock Exchange.

Retail operations generated second-quarter income of $162.5 million, more than double the $65.3 million reported in the same period last year.

Industry analysts believe that the retailing upturn is largely attributable to cost-cutting measures and organizational changes that Sears Merchandise Group Chairman Arthur C. Martinez announced in January.

Since January, Sears has closed 113 unprofitable stores and phased out its money-losing catalogue business. Martinez said those shutdowns were designed to help reduce costs by $300 million annually.

“We’re off to an exciting start in 1993, and our challenge now is to continue the momentum that we’ve started at the new Sears,” Sears Chairman Edward A. Brennan said in a statement.

A large chunk of the second-quarter earnings came from Sears’ $635.1-million gain from the initial public offering of stock in Allstate, its insurance subsidiary. On the other hand, Sears had a $64-million quarterly loss on the sale of its Coldwell Banker residential real estate business.

Sears last year decided to sell Coldwell Banker to concentrate on its flagging retail operations. Specifically, Martinez was given responsibility for boosting apparel sales when he left his position as Saks Fifth Avenue vice chairman to join Sears last September.

Martinez is aiming to boost the sale of apparel because that is among Sears’ most profitable lines. While apparel accounts for just 26% of Sears store sales, it generates about 60% of the merchandise unit’s profit.

Apparel sales, which increased 14% compared to the same period last year, accounted for much of the retail sales rise.

“Martinez deserves a lot of credit because he’s beginning to turn the merchandising group around,” said Brian Postol, a retail industry analyst at A.G. Edwards in St. Louis.

Martinez continued to make changes within the top management of the merchandising unit’s organization. Robert Mettler, chairman of the Robinson’s unit before May Department Stores merged that chain with the May Co. stores, became president of Sears apparel operations in March.

In addition, Martinez early this year announced that Sears would spend $4 billion over five years to renovate its 798-store chain and expand the selling space for apparel in each location by 30%. The company has already started renovating more than 100 stores this year.

“We believe that the renovation was one factor in the apparel sales increase,” said Perry Chlan, a Sears spokesman.

Many analysts expect Sears to launch additional initiatives to boost apparel sales.