June 8 (Reuters) - Sears Holdings Corp reported a smaller first-quarter loss as its Kmart chain and Sears department stores discounted less.
The company, which plans to spin off about 235 stores into a real estate investment trust (REIT), said it expected to launch a rights offering to buy shares in the REIT on Friday. The offering is expected to raise $2.6 billion, Sears said.
Net loss attributable to Sears shareholders narrowed to $303 million, or $2.85 per share, in the quarter ended May 2, from $402 million, or $3.79 per share, a year earlier.
Revenue fell 25.3 percent to $5.88 billion.
The company's shares were up 3 percent in premarket trading. (Reporting by Nathan Layne in Chicago and Sruthi Ramakrishnan in Bengaluru; Editing by Don Sebastian)