Sears Holdings unpleased with performance

HOFFMAN ESTATES, Ill. Sears Holdings today announced domestic comparable-store sales for the nine-week period ended July 7 for its Kmart and Sears stores. For the nine-week period, Kmart comparable-store sales decreased by 3.9%, with declines across most categories. Sears domestic comparable-store sales decreased by 4%, with declines across most categories partially offset by increases in women's apparel and footwear. While comparable-store sales within home appliances declined to a higher degree than declines recorded across most other categories for this period, the decline in home appliances was less than the decline experienced in this category during the first quarter of this fiscal year.

The company anticipates that, if the sales trends experienced during the first nine weeks of the second quarter continue through the rest of the second quarter ending August 4, net income will be between $160 million and $200 million, or between $1.06 and $1.32 per fully diluted share. For the second quarter last year, the company reported net income of $294 million, or $1.88 per fully diluted share.

Sears Holdings ceo Aylwin Lewis said, "We are disappointed with our recent performance. Although we believe our business has suffered from many of the same factors that have led other retailers to announce disappointing results and lowered expectations, our recent performance underscores our ongoing need to become more relevant to consumers while improving our discipline around expense management."