Sears, Roebuck & Co., a Hoffman Estates, IL, U.S.-based department-store company, shifted U.S. $191 million in costs
related to an accounting change to the second quarter from the
first after discussions with regulators. The change increases reported first-quarter results by $0.59 a share to $0.34, and lowers second-quarter net income to $0.71, according to amended filings with the U.S. Securities and Exchange Commission. This won't affect the earnings estimate for the year, spokeswoman Peggy Palter said.
Sears first announced the cost in July, when the company said it changed the way it accounts for the allowance of uncollectible
credit-card accounts, to be more conservative. The decision to
record the expense in the second quarter instead of the first came as a result of talks with the SEC, Palter said. Sears has said it expects profit this year to rise to $5.15 a share from $4.22 last year.
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