2017.05.2518:46:00UTC+00Sears Swings to Profit as Turnaround Bid Delivers Results

Shares of Sears Holdings Corp. rallied after reporting its first quarterly profit since 2015, providing a bright spot for the retailer that has struggled to regain momentum.

The company's shares traded up 11 percent at $8.31 in late-afternoon trading.

First-quarter net income registered at $244 million, a significant improvement from the $471 million loss seen a year prior. The swing to positive results show efforts by CEO Eddie Lampert to sell assets and raise capital gaining traction. Investors priced in the results as an indication that Lampert's bid to revamp the bid is beginning to show progress.

However, the retail chain's main business- overseeing the Sears and Kmart stores- still faced difficulties in the most recent quarter.Despite the improvement in its financial results, sales continue to be gloomy. Sales at Sears' U.S. stores open by more than one year slid 12.4 percent, while Kmart sales fell 11.2 percent. Revenue plunged 20 percent to $4.3 billion in the latest quarter.