Sears Holdings Corp. said that its second-quarter profit fell 40% because of lower overall sales and weaker operating results from Kmart and its domestic Sears operations. Net income for the period ending Aug. 4 fell to US$176 million, or $1.17 per share, compared with $294 million, or $1.88 per share, in the previous year. The quarter's earnings were compared with year-ago results that included a gain on a large legal settlement. Quarterly revenue fell 4% to $12.24 billion versus $12.79 billion a year ago.
Sears blamed its performance on lower operating results at Sears Domestic and Kmart that were partially offset by improved results at Sears Canada. Still, same-store sales at Sears' U.S. stores fell 4.3%, while Kmart's comparable store sales fell 3.8%. Category increases were recorded in consumer electronics.