"Despite the softness in our retail channels, our home services business continued to perform well and we believe it is positioned for continued growth for the balance of the year." Lampert added that as a result of the sales of its Craftsman brand and the sale of certain real estate properties, the company expects to report positive net income for the first quarter of 2017. Sears said it expects to reduce costs by $1.25 billion for the year, up from a previously announced $1 billion. The retailer said it has already delivered on $700 million in cost savings to date. The initiatives being taken to realize $1.25 billion in annualized cost savings in 2017 include the previously announced closing of 108 Kmart and 42 Sears stores. New actions include the closing of 92 underperforming pharmacy operations in certain Kmart stores and 50 Sears Auto Center locations.