Sears Holdings comps down, stock up
January 10, 2007-- Home Textiles Today,
Hoffman Estates– Clearly trying to drive its stock price higher, Sears Holdings Corp. said today that despite falling same-store sales during the crucial holiday selling season, it will report a profit of $750 to $830 million, up as much as 16% to 28% from the $648 million it earned during the fourth quarter of 2005.
Since being taken over by owner Edward Lampert, Sears has taken a low public profile, shunning comment, avoiding the press and declining to report monthly same-store sales. But with its stock price off by almost 10% from its 52-week high, Sears put out the good news more than six weeks before it will report fourth-quarter results on March 1.
Liking what it heard, Wall Street gave Sears what it hoped for and pushed its stock price up by $3.26 a share, or 2%, to $169.29 in mid-day trading.
The retailer said Kmart same-store sales declined 1.2% during the nine-week period ended Dec. 30, hampered by lower transaction volumes. Apparel sales, while hurt by unseasonably warm weather, still increased over last year's level. Same-store sales in Sears units fell by 5.6%, hurt by lower lawn and garden and appliance sales, partially offset by an improvement in women's apparel, the company said.
Related Content By Author
Online Moves From Afterthought To Main Thought For Textiles Suppliers