Home
Global Supplier Directory
APPLIANCE Engineer
Supplier Solutions
APPLIANCE Line
Whitepaper Library
Calendar of Events
Association Locator
Contents Pages
Market Research
Subscription Center


 
Daily News

Sears Reports Q4 Results for 2003
Jan 29, 2004
 Printable format
 Email this Article
 Search

Retailer Sears, Roebuck and Co., headquartered in Hoffman Estates, IL, U.S., reported a net income of U.S. $2.7 billion, or $10.84 per share on an average base of 253.6 million common and dilutive common equivalent shares, for the fourth quarter ended Jan. 3, 2004. During the same period in 2002, Sears had a net income of $848 million, or $2.67 per share on an average base of 317.6 million common and dilutive common equivalent shares.

Sears' 2003 fourth-quarter results include the following significant items:

  • a pretax gain of $4.1 billion, or $10.38 per share, related to the sale of the company's domestic Credit and Financial Products business;
  • a pretax charge of $791 million, or $1.98 per share, on the early retirement of debt that occurred as a result of the sale of the company's domestic Credit and Financial Products business; and
  • a pretax gain of $81 million, or $0.20 per share, related to the sale of the company's National Tire & Battery (NTB) business.


    The 2002 fourth quarter results included a pretax gain of $265 million, or $0.56 per share, related to the sale of the company's remaining investment in Advance Auto Parts, Inc.

    Excluding the effects of these significant items, adjusted earnings per share for the current quarter was $2.24 on an average base of 253.6 million common and dilutive common equivalent shares, compared with $2.11 on an average base of 317.6 million common and dilutive common equivalent shares in the prior year quarter.

    "We made significant strides in restructuring the company and repositioning our retail and related services business in 2003," said Sears Chairman and CEO Alan J. Lacy in a statement from the company. "Our accomplishments in 2003 position us well to achieve our 2004 goals of building topline momentum, improving our margin structure and growing key businesses to further enhance our competitiveness."

    As a result of the sale of the domestic Credit and Financial Products business on Nov. 3, 2003, the Retail and Related Services segment now includes the revenues and related costs associated with the long-term marketing and service alliance with Citigroup from the sale date through the end of the quarter. In addition, on Nov. 29, 2003, the company completed the sale of its NTB business. The fourth-quarter segment results include the results of operations of NTB through Nov. 29, 2003.

    Retail and Related Services reported operating income of $753 million for the fourth quarter of 2003, compared with $726 million in the fourth quarter of 2002, with the current year period benefiting from an additional week in the fiscal quarter and the revenues generated from the program agreement with Citigroup.

    "Overall, we made progress in our full-line stores again this year," Mr. Lacy said. "We enhanced the overall customer proposition of our home appliance business, delivered exceptional sales across every major category of lawn and garden, and saw apparel sales trends improve throughout much of the year, especially in our core women's ready to wear business."

    The gross margin rate for the quarter declined to 28.9 percent in the current year from 29.4 percent in the prior year as increases in promotional and clearance activities, particularly within the apparel businesses, were partially offset by a favorable LIFO inventory credit.

    Selling and administrative expenses as a percentage of revenues declined to 19.2 percent in the current year quarter from 19.9 percent in the prior year due to expense reductions in most retail business formats from ongoing productivity initiatives as well as Citigroup's support of credit promotional activity for the last 9 weeks of the fourth quarter.

    Sears Canada reported operating income of $109 million for the fourth quarter of 2003, compared with $90 million in the fourth quarter of 2002, benefiting from the additional week in the current year fiscal quarter, as well as favorable foreign currency rates.

    Revenues for the fourth quarter were $1.5 billion, compared with $1.3 billion in the prior year quarter. Revenues for the 53rd week favorably impacted sales in the current year quarter by approximately 4 percent.

    The gross margin rate declined to 30.9 percent in the current year quarter from 32.3 percent in the prior year, primarily due to an increase in promotional activity. Selling and administrative expenses as a percentage of revenues decreased to 23.5 percent in the current year quarter from 23.9 percent in the prior year.

    The company also reported full-year 2003 net income of $3.4 billion, or $11.86 per share on an average base of 286.3 million common and dilutive common equivalent shares, compared with net income of $1.4 billion, or $4.29 per share on an average base of 320.7 million common and dilutive common equivalent shares, for 2002.

    The company's 2003 full-year results include several significant items, such as the gain on the sale of the domestic Credit and Financial Products business, whose 2003 results included a gain from the sale of previously charged-off credit card receivables, the gain on the sale of NTB, the loss on the early retirement of debt and a charge resulting from the company's refinement of its business strategy for The Great Indoors. In aggregate, these items increased 2003 net income by $2.2 billion, or $7.50 per share.

    Back to Daily News

  •  

    Daily News

    ...........................................................

    Aug 29, 2014: Adaptive Frequency Drive Increases Trane Chiller Efficiency

    Aug 29, 2014: Vitamix President Receives Entrepreneur of the Year Award

    Aug 28, 2014: LG Heat Pump Clothes Dryer Earns Emerging Technology Award

    Aug 28, 2014: Early Snowthrower Demand Boosts Toro Sales

    Aug 27, 2014: Sustainability Standard Launched for Household Portable and Floor Care Appliances

    More Daily News>>

    RSS Feeds
    .........................................................
    Appliance Industry
    Market Research

    ...........................................................

    March 2014: Market Research - 62nd Annual U.S. Appliance Industry Forecast
    February 2014: Appliance Magazine Market Insight: December 2013
    January 2014: Market Research - Appliance Historical Statistical Review: 1954-2012
    January 2014: Appliance Magazine Market Insight: November 2013




     
    Contact Us | About Us | Subscriptions | Advertising | Home
    UBM Canon © 2014  

    Please visit these other UBM Canon sites

    UBM Canon Corporate | Design News | Test & Measurement World | Packaging Digest | EDN | Qmed | Pharmalive | Plastics Today | Powder Bulk Solids | Canon Trade Shows