Sears Holdings Corp. (SHLD) posted a 55% drop in quarterly profit, hurt by goodwill impairment and restructuring charges in the worst retail environment in at least a decade. However, shares of the largest U.S. department-store chain jumped about 8% on Thursday as the owner of Kmart still beat market expectations by cutting costs and closing underperforming units.

In the latest fourth quarter, Sears earned $190 million, or $1.55 per share. However, excluding the after-tax charge of $187 million related to its Orchard Supply Hardware subsidiary and other items, earnings were $2.94 a share. Analysts on average were looking for $2.68 per share. 

The retailer said it had closed 28 units in 2008 and plans to shut 24 additional Kmart and Sears stores by the end of May to generate cash and boost earnings. It also cut inventory levels by 12% to $8.8 billion as of Jan. 31.

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