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Sears sees bright 4Q
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January 4, 2000: 12:06 p.m. ET
No. 2 retailer expects earnings increase, cites improved margins
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NEW YORK (CNNfn) - Citing improved margins, cost containment and strong credit business, Sears Roebuck & Co. said Tuesday it expects fourth-quarter earnings to be substantially higher than last year’s per-share figure of $1.48.
Shares of the Hoffman Estates, Ill.-based Sears (S) were up 2-11/16 to 32-3/4 in recent trading.
Sears, the world’s second-largest retailer behind Wal-Mart (WMT), said it expects fourth-quarter earnings before non-comparable items to increase at "a high-teen to low-twenty percentage rate” over last year’s figure.
For the full year, Sears said that based on current trends it will revise its outlook for earnings per share, expecting an increase at a high single-digit to low-teen percentage rate, excluding non-comparable items.
Analysts polled by First Call Corp. had expected Sears to post fourth-quarter earnings of $1.50 per share. The full year projection is $3.43 per share.
Sears said total domestic store revenue for the five weeks ended Jan. 1, 2000, was $4.52 billion. Comparable-store domestic revenue fell 0.6 percent while total domestic store revenue rose 1.2 percent, excluding the impact of the company's divestiture of HomeLife.
Chairman and CEO Arthur C. Martinez said Sears did not significantly increase marketing or promotional costs during the holiday season.
He said sales were particularly strong in home appliances, electronics, home fashions, fine jewelry and the infants' and toddlers' category. Also, Martinez said the company was pleased with its Internet sales, "which significantly exceeded expectations.”
Sears has more than 850 full-line stores and 2,100 specialty stores. 
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Sears
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