DETROIT ? Shares of Kmart Holding Corp. were up more than 14 percent in early afternoon trading, after the discounter reported Monday it swung into a profit in the second quarter, compared with a year-ago loss. It marked the retailer’s third consecutive quarterly profit since emerging from bankruptcy in May 2003.

The company earned $155 million, or $1.54 per share, in the three months ended July 28. That compared with a loss of $5 million, or 6 cents, in the same quarter last year.

The earnings offered the first “apples-to-apples” comparison since Kmart emerged from bankruptcy as a restructured company.

Total revenue, however, dropped 15.3 percent to $4.8 billion from $5.6 billion in the year-ago period.

Same-store sales, considered the best indicator of a retailer’s health, continued to decrease, falling 14.9 percent from a year ago. Same-store sales are sales at stores opened at least a year and take store closings out of the mix.

The company attributed the sales decline to fewer promotional events and less newspaper advertising, as well as to unseasonably cold weather, which affected sales of seasonal merchandise such as lawn and garden products.

“We are pleased with our continued progress and ability to deliver consistent profit,” chief executive Julian Day said in a statement. “We have continued to focus on process changes that simplify the operations of our stores and distribution centers, including improving merchandise flow and lowering inventory levels which result in lower shrink expense, lower clearance and promotional markdowns and lower payroll expenses.”

Gross margin increased $9 million to $1.24 billion for the second quarter from $1.23 billion in the year-ago period. Gross margin as a percentage of sales increased to 26 percent for the period, up from 21.8 percent a year ago.

Kmart, which operates a distribution center in Lawrence, Kan., has won the praise of investors for its quick financial turnaround, and the company’s shares have nearly doubled since March. Shares of Kmart rose $9.15 reaching $74.05 on the Nasdaq Stock Market.

Shoppers leave a Kmart store in Roseville, Mich. They had been shopping on Monday. Kmart Holding Corp. posted its third-straight quarterly profit Monday and said fewer promotions and more efficient distribution had helped it achieve bigger margins.

Kmart releases very little information between quarterly reports, and any news tends to evoke a big reaction.

Analysts on Monday were impressed with Kmart’s gross margin improvement.

Richard Hastings, retail analyst at New York-based credit advisory firm Bernard Sands, praised Kmart’s focus on improving margins.

“Gross profit at Kmart shows they are transforming their merchandise mix around higher margin apparel, footwear, Martha Stewart Everyday softlines and other margin-driven items,” Hastings said.

Kmart has exclusive rights to the Martha Stewart Everyday brand of home products, and demand has remained high despite the domestic guru’s conviction for lying about a stock sale.

Last week, Kmart said it was cutting some 200 jobs at its headquarters as part of ongoing streamlining efforts.

The company also lowered the maximum number of stores it planned to sell to The Home Depot Inc. from 24 to 19.

The planned real estate sale had been embraced enthusiastically by Wall Street. Under the revised agreement with Atlanta-based Home Depot, Kmart will sell no fewer than 13 stores for $173 million in cash and up to 19 stores for $288.5 million. Previously, it said it would sell up to 24 stores for a maximum of $365 million.

Kmart also has announced plans to sell up to 54 stores to Sears, Roebuck and Co. for up to $621 million.

Much of the enthusiasm for Kmart stems from its valuable real estate holdings, but skepticism remains about its viability as a retailer. The company continues to lose market share to powerhouses Wal-Mart Stores Inc. and Target Corp.

Kmart is hoping its redesigned clothing lines, launched this summer in time for the back-to-school season, will help distinguish it from its competitors.