Sears takes 2Q guidance down again
August 13, 2007,
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.