Reply #15: Sears Holdings 3Q profit plunges 99 pct [View All]

[UpInArms]

http://news.yahoo.com/s/ap/20071129/ap_on_bi_ge/earns_sears_holdings\?_ylt=Aq7o7VXViPPkpIUqUYRe3Z.b.HQA

HOFFMAN ESTATES, Ill. - Department store retailer Sears Holdings Corp., led by hedge-fund manager Chairman Eddie Lampert, said Thursday its third-quarter profit plunged due to a $223 million drop in gross margin, reflecting weak sales and inventory-clearing markdowns.

Profits fell well short of Wall Street expectations and shares plunged 12 percent or $15.01, to $101.25 in premarket trading.

The operator of Sears and Kmart stores, which earlier this week said it may buy out the rest of retro-themed retailer Restoration Hardware Inc., reported net income declined to $2 million, or a penny per share, from $196 million, or $1.27 per share, a year ago when results were padded by $64 million in investment gains.

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The company said comparable sales, or those from stores open at least 13 months, declined 4.2 percent for the quarter at Sears stores and 5 percent at Kmart, with notable declines in clothing and lawn and garden at both.

Sears blamed the weaker sales on increased competition, less consumer spending because of the weak housing market and growing credit concerns and unseasonably warm weather, which hurt sales of apparel and other seasonal merchandise.

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