Sears Struggles Continue; Profit Falls 62%

[marmar]

via the NY Times:



Sears Struggles Continue; Profit Falls 62%

By THE ASSOCIATED PRESS
Published: August 28, 2008

The department store retailer, the Sears Holdings Corporation, reported a 62 percent drop in second-quarter profit as the company continued to struggle to attract customers to its stores despite a restructuring.

The company also delivered a downbeat outlook predicting that its sales and gross profit margins will continue to be pressured amid a challenging economic environment.

The retailer, which operates Kmart and Sears, Roebuck stores, said Thursday that it earned $65 million, or 50 cents a share, in the quarter ended Aug. 2. That compares with $173 million, or $1.15 per share, in the period a year ago.

The second-quarter 2008 results included the benefit of the reversal of a $62 million reserve because of the overturning of an adverse jury verdict in 2007 related to the redemption of certain Sears bonds in 2004.

Excluding the item, earnings were 21 cents a share for the second quarter.

Revenue declined to $11.76 billion from $12.26 billion in the period a year ago. Sales at stores opened at least a year, or same-store sales, dropped 6.2 percent in the United States. Same-store sales are considered a key indicator of a retailer’s health. .......(more)

The complete piece is at: http://www.nytimes.com/2008/08/29/business/29sears.html?_r=1&oref=slogin