Sears Lowers 2Q Guidance For Second Time
Comp-store Sales Down with Declines across most Categories
By Staff -- Home Textiles Today, 8/20/2007 12:00:00 AM
Hoffman Estates, Ill. —
Sears Holdings Corporation lowered its second quarter expectations, the second time is has done so in recent weeks.
For the second quarter ended Aug. 4, Kmart comparable-store sales decreased by 3.8 percent, with declines across most categories. Sears' U.S. comps dropped by 4.3 percent, with declines across most categories partially offset by increases in consumer electronics, women's apparel and footwear.
The company currently expects second quarter net income to be between $170 million and $185 million, or between $1.13 and $1.23 per fully diluted share. Previously, the company estimated profit of $160 million to $200 million.
Since that July 10 guidance, "the company has experienced higher markdowns, most notably within seasonal apparel categories that were largely offset by lower payroll expense, including performance-based compensation, and favorable inventory shrink experience," the company reported.
For the second quarter last year, Sears Holding reported net income of $294 million, or $1.88 per fully diluted share.
In addition, Sears Holding announced today that it will repurchase up to an additional $1.5 billion of its common shares. That comes on top of $19 million remaining under previous repurchase authorization. As of today, the company had approximately 143.6 million common shares outstanding.
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