Thursday, 25 May 2017

Sears and Best Buy surge on Wall Street

Shares in Sears and Best Buy both enjoyed double digit gains after the companies brought some rare good news for the US retail sector.

Best Buy shares jumped 13% after the electronics retailer reported a rise in first-quarter sales.

Strong demand for games products helped the firm to post a 1.6% rise in sales at stores open for more than a year.

Best Buy also said it expected same-store sales in the second-quarter to grow by between 1.5% and 2.5%.

Meanwhile Sears shares surged 16% after the company reported its first quarterly profit for nearly two years.
The retailer reported a profit of $244m, helped by its cost-cutting programme and the sale of its Craftsman tools brand to Stanley Black & Decker earlier this year.

However, underlying sales still saw steep declines. Same-store sales at its Sears stores in the US dropped 12.4%, whereas at the group's Kmart stores they fell 11.2%.

Best Buy was the biggest riser on the S&P 500, with the index up 4.14 points at 2,408.53.

The Dow Jones Industrial Average rose 60.49 points to 21,072.91, while the Nasdaq climbed 11.97 points to 6,174.99.

SKY     News.