Sears net income falls 47 percent on sliding sales
Sears Holdings Corp, the retailer controlled by investor Edward Lampert, reported fourth-quarter profit that plunged more than analysts projected after appliance and clothing sales declined.
Net income fell 47 percent to $426 million, or $3.17 a share, in the three months ended Feb. 2 from $811 million, or $5.27, the Hoffman Estates, Illinois-based company said yesterday in a statement. Revenue declined 6.8 percent to $15.07 billion.
Sears announced a reorganization last month to revive sales as consumers burdened by higher fuel, food and mortgage costs cut spending or shopped elsewhere.
The retailer has posted sales declines in stores open at least a year in every quarter since Lampert combined the Sears Roebuck and Kmart chains three years ago.
"I'm not sure that there's anybody out there who says, 'Sears or Kmart is my favorite place to shop'," said David Keuler, a money manager at Mason Street Advisors. The Milwaukee firm holds Sears shares only in index funds and not in its actively managed portfolios.
Seven analysts surveyed by Bloomberg estimated profit of $3.11 a share.
Profit included a 13-cent gain from asset sales.
Sears rose 24 cents to $101.60 on Wednesday in NASDAQ Stock Market composite trading.
The stock, little changed this year, has lost 43 percent of its value in the past 12 months through yesterday.
"Given the challenging retail environment, we will work to improve and tighten our management of costs and inventory levels in 2008," said W. Bruce Johnson, Sears Holdings' interim chief executive officer and president.
To stem declining sales, Lampert ousted Chief Executive Officer Aylwin Lewis last month and reorganized the company into five units: support services; apparel and home goods; online sales; real estate; and development of its brands, such as Craftsman tools.
The retailer also cut 200 jobs, or about 4 percent, at its headquarters to save costs. The company operates about 3,800 stores in the United States and Canada.
Agencies
(China Daily 02/29/2008 page16)
