Sears Holdings sees 4Q, FY income drop

HOFFMAN ESTATES, Ill. Sears Holdings reported that net income was $190 million, or $1.55 per diluted share, for the fourth quarter ended Jan. 31, compared to net income of $426 million, or $3.17 per diluted share, for the fourth quarter ended Feb. 2, 2008.

For the fiscal year ended Jan. 31, net income was $53 million, or 42 cents per diluted share compared with net income of $826 million, or $5.70 per diluted share, for the fiscal year ended Feb. 2, 2008.

"Fiscal 2008 was a very difficult year for the U.S. economy, and its effect on consumer confidence reflects the turmoil that has enveloped the retail industry and our business. We maintained our focus on providing great product and service value to our customers, many of whom feel the impact of lower incomes and tighter credit," said Bruce Johnson, Sears Holdings' interim CEO and president.

For the quarter, total revenues decreased $1.8 billion to $13.3 billion for the 13 weeks ended Jan. 31, as compared to total revenues of $15.1 billion for the 13 weeks ended Feb.2, 2008. Full year fiscal 2008 revenues were $46.8 billion as compared to $50.7 billion in fiscal 2007. The decrease in fiscal 2008 was primarily due to lower comparable-store sales.

For the quarter, domestic comparable-store sales declined 8.3% in the aggregate, with Sears Domestic comparable-store sales declining 11% and Kmart comparable store sales declining 5%. For the year, domestic comparable-store sales declined 8% in the aggregate, with Sears Domestic comparable-store sales declining 9.5% and Kmart comparable-store sales declining 6.1%. Comparable-store sales declined for the quarter and year across most major categories at both Kmart and Sears Domestic.