HOFFMAN ESTATES, Ill.-Net income for Sears Hometown and Outlet Stores rose by an impressive 28.6 percent to $8.8 million in its fiscal third quarter, according to the first quarterly financial report from the retail company since the finalization of its separation from Sears Holdings.
Net sales in the quarter, which ended on Oct. 27, totaled $556.9 million and included a 3.1 percent gain in same-store sales. Most of the sales pickup occurred in the Hometown segment, which benefited from increased sales and margins from home appliances. Sales boosts in mattresses from both Hometown and Outlet stores, along with a 28 percent increase in multichannel sales, helped bolster the top line as well.
Gross margin for the quarter also helped the bottom line by gaining 193 basis points to finish at 24.9 percent. Selling and administrative expenses jumped 10.8 percent in dollars and 152 basis points as a percentage of sales, to 21.9 percent.