HOFFMAN ESTATES – Sears Holding Corp.'s push to turn around its ailing business is showing early signs of paying off, though the retailer failed to stem declining sales.

The Hoffman Estates-based company said Thursday that aggressive cost-cutting and reduced inventory levels helped narrow its loss in the second quarter from a year ago, with results coming in line with Wall Street expectations.

"We did what we said we were going to do," CEO and President Lou D'Ambrosio said in a letter to employees, noting that the company still has plenty of work ahead.