One-time charges lead to $197M loss at Sears
July 23, 2001,
Hoffman Estates, IL — Weighed down by $809 million in pre-tax charges — partly to cover the cost of shutting down its HomeLife stores and quitting the cosmetics business — Sears, Roebuck and Co. recorded a second-quarter loss of $197 million, in line with expectations, compared with a prior-year profit of $388 million.
Overall sales, including the company's big credit business, jumped up by 1.8 percent, to $10.2 billion from $10.0 billion, spurred by a hefty 18 percent boost in credit and financial products sales.
"Despite a very challenging retail environment, we delivered second-quarter results that were in line with our expectations," said chairman and ceo Alan Lacy. "In our core retail operations, we were very effective in tightly managing inventories and costs. In addition, our credit business achieved solid growth in receivables while maintaining strong overall credit quality."