Sears Holdings Corporation reported net income of U.S. $180 million, or $1.14 per diluted share, for the first quarter ended April 29, 2006, compared with a net loss of $9 million, or $0.07 per diluted share, for the first quarter ended April 30, 2005. Excluding the change in accounting, the prior year first quarter net income was $81 million, or $0.65 per diluted share. The improvement in first quarter 2006 earnings reflects improved profitability at both Kmart and Sears Domestic, largely due to reduced expenses.
The statements of operations for the 13 weeks ended April 29, 2006 are not comparable to the prior year period because the prior year period includes the results of Sears, Roebuck and Co. only for the period subsequent to March 24, 2005, the date of its acquisition by Kmart Holding Corporation. In order to provide a comparable performance measure for the combined company, pro forma results for the prior year period have been presented as though Kmart and Sears had been combined as of the beginning of fiscal 2004. On a pro forma basis, the company's income before the cumulative effect of the accounting change in the first quarter of fiscal 2005 was $12 million, or $0.07 per diluted share.
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