Sears’ Q2 profit falls 62%

Source: Retail Digital

Date :8/29/2008 4:43:23 AM

Sears Holdings Corp has announced today, August 29, that second quarter profit slumped 62 percent, blaming the effects of a slowing economy.

Falling short of expectations, the retailer, controlled by hedge fund manager Edward Lampert, said that the decline was partly driven by price markdowns.

Cost controls should lead to higher earnings in the second half of the year, according to the company.

Comparable same-store sales fell 6.2 percent at Kmart and Sears Domestic, reflecting the increasing competition and weak US economy.

For the quarter, total revenues dropped to US$11.8 billion, compared to US$12.3 billion in the same period during fiscal 2007.

Bruce Johnson, CEO and President, said: “Our second quarter results reflect the continued effects of a slowing economy which contributed to the earnings declines we have experienced since the third quarter of 2007.”