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Shoppers at Toronto's Eaton Centre.Deborah Baic/The Globe and Mail

Sears Holdings Corp. reported a quarterly loss on Thursday as consumers curbed spending in a grim U.S. economy.

The operator of Sears department stores and Kmart discount stores said its net loss narrowed to $39-million, or 35 cents a share, in the second quarter ended July 31 from $94-million, or 79 cents a share, a year earlier.

Sales fell $93-million to $10.5-billion. That missed the analysts' average estimate of $10.6-billion, according to Thomson Reuters I/B/E/S.

Earlier this week, the retailer's Canadian unit, Sears Canada, posted a 35-per-cent drop in quarterly profit.

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