Sears Holdings Corporation announced US comparable store sales for the nine-week period ended July 7, 2007 for its Kmart and Sears stores. This period represents the first nine weeks of the company's 13-week fiscal 2007 second quarter which ends August 4, 2007. For the nine-week period, Kmart comparable store sales decreased by 3.9 percent, with declines across most categories. Sears domestic comparable store sales decreased by 4.0 percent, with declines across most categories partially offset by increases in women's apparel and footwear.
Sears said that 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, 2007, net income will be between US $160 million and $200 million, or between $1.06 and $1.32 per fully diluted share. The current year second quarter estimate includes a combined gain of approximately $20 million pre-tax ($12 million after-tax or $0.08 per diluted share) resulting from gains from bankruptcy-related settlements and total return swap investing activities.
Sears Holdings Chief Executive Officer 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."
Sears said it currently expects to end the second quarter with approximately $2.8 billion in cash and cash equivalents, excluding Sears Canada.