Sears unpleased with 3Q performance

HOFFMAN ESTATES, Ill. While the company did cite the weak housing market, Sears Holdings did not blame the economy entirely for its disappointing third quarter results ended Nov. 3, which included net income of $2 million, or 1 cent per diluted share, compared with net income of $196 million, or $1.27 per diluted share, for the third quarter ended Oct. 28, 2006.

"We are very disappointed in our performance for the third quarter. We cannot blame our results entirely on the retail and macro-economic environments. We have much on which to improve and are working hard to do so," said Aylwin Lewis, Sears Holdings' ceo and president. "Nevertheless, the xompany continues to generate cash, and we continue to invest in our customer relationships, our multi-channel experience, and our information technology systems. Importantly, we believe that our stores and Web sites are ready to serve our customers and provide them more reasons to shop with us."

The company reported that total domestic comparable-store sales declined 4.6%. Sears Domestic's comparable store sales declined 4.2% for the quarter, while Kmart's comparable store sales declined 5%. The company said it experienced lower sales across most merchandise categories at both Kmart and Sears Domestic, with notable declines in apparel and lawn and garden at both formats, partially offset by increased sales within home electronics, notably at Sears Domestic. For the quarter, total revenues declined $0.4 billion to $11.5 billion in fiscal 2007, as compared to $11.9 billion for the third quarter of fiscal 2006.