Sears Holdings Corp posted its quarterly report on Thursday. It reported a quarterly loss blaming the bad situation of U. S economy. The American consumers have reduced spending due to rise in unemployment and deduction in pay checks.

Though Sears have posted a loss their loss margin has reduced as compared to the previous year. The owners of Sears and Kmart have lost $39 million as compared to last year’s loss of $94 million. This is mainly due to the improvement of Kmart sales which has slightly increased Kmart’s profit margins. Respite Kmart’s performance boost the Sears and Kmart lost 35 cents per share and the revenue slipped to $10.46 billion.

Analysts had predicted the Sears and Kmart to lose 18 cents per share with revenue of $10.62 billion and the company missed this target as the loss came up to 19 cents per share when the one-time adjustments were excluded.

Interim CEO W. Bruce Johnson expressed his relief that the struggling Kmart had made a slight improvement in profit margins but was unhappy about the sales in established locations. In these established stores the sales decreased by 1.4 percent at the brand. He was quick to notice that the first decrease in sales figures in three quarters is due to the reduced sales of food.

Sales fell by 2.8 percent in Edward Lampert’s Sears and this was due to consumers spending cautiously on garden items, tools and consumer electronics. The country’s economic condition is not helping their cause in any way as more and more consumers are beginning to spend less.

The poll conducted by FactSet Research had predicted the loss of Sears Holdings by 17 cents per share and the sales decreased to $10.46 billion.