Sears New Release :: essays research papers

Sears Updates Segment Reporting; Adopts New Accounting Standard Resulting In One-Time Non-Cash Charge Of $520 Million In Second Quarter HOFFMAN ESTATES, Ill., April 12 /PRNewswire/ -- Sears, Roebuck and Co. (NYSE: S) announced total domestic store revenues for the five weeks ending April 7, 2001 were $2.56 billion. Comparable domestic store revenues decreased 5.3 percent. Total domestic store revenues decreased 5.1 percent compared with $2.7 billion for the five weeks ending April 8, 2000. "March retail sales fell below expectations, with the slowing economy and colder than anticipated weather having an impact on both our hardlines and softlines businesses," said Chairman and Chief Executive Officer Alan J. Lacy. "Weather-related seasonal apparel and lawn and garden merchandise accounted for over one-third of the comparable store sales decline. Among the better performing businesses was Home Appliances, which continues to gain market share. The Great Indoors format and sporting goods businesses also performed well." Sears, Roebuck and Co. 5 Weeks 9 Weeks 2001 Domestic Store Revenues $2,563,400,000 4,530,800,000 2000 Domestic Store Revenues 2,701,000,000 4,697,600,000 Percent Change (5.1)% (3.6)% Comparable Domestic Stores Percent Change (5.3)% (3.9)% Preliminary Earnings Announcement The company anticipates that earnings per share for the first fiscal quarter of 2001, ended March 31, will be approximately $0.53, versus $0.65 in the first quarter of last year. In the first quarter, the credit business performed in line with expectations, reflecting continued strong portfolio quality. However, operating income from the credit business for the first quarter will be slightly below last year, mainly due to lower revenues. The domestic retail business did not meet the company's expectations in the first quarter due to sales and margin shortfalls resulting from the slowing economy and cooler than expected spring weather in much of the country. Sears Revises Segment Reporting FASB Statement No. 131 prescribes accounting guidance for segment reporting and requires that a company's externally reported segments be consistent with its internal management structure. Consequently, effective for the first quarter of 2001, Sears is modifying its externally reported segments to reflect the company's integrated retail and related services strategy and to align externally reported business segments with changes that have occurred in the company's internal structure over the past several months. The company's four new segments are as follows: - Retail and Related Services -- This segment consists of merchandise sales and related services, including service contracts, delivery and product installation and repair services. It covers all Sears selling channels, including specialty and full-line stores as well as direct-to- customer operations which includes online, catalogs and clubs and services. - Credit and Financial Products -- This segment includes Sears domestic credit business and the company's related financial product offerings. - Sears Canada -- Formerly named the International segment, this segment