Sears’ Net Hurt by Accounting Changes

Sears, Roebuck & Co. said first-quarter net income fell 38% to $110 million, or 34 cents a share, sapped by charges from accounting changes and costs to remodel Canadian stores.

But the retailer’s operating profit doubled to $300 million, or 93 cents a share, from $150 million, or 45 cents, helped by savings from job cuts and other restructuring. Analysts were expecting 61 cents until the firm said last week that its results would exceed forecasts by more than 50%.

Revenue rose 2% to $9.04 billion, thanks to a 26% increase from credit and financial products. Merchandise sales and services, which account for 85% of revenue, edged down 0.6% to $6.77 billion.

Shares of Hoffman Estates, Ill.-based Sears rose 4 cents to $53.75 on the New York Stock Exchange.