Same-store sales, the industry's important measure of receipts rung up at stores open longer than a year, were off 3.9% in the U.S., reflecting a 3.4% drop at the company's Sears Roebuck stores and a 4.4% decline at its Kmart properties.
"We believe these declines reflect both increased competition and the impact of external factors such as rising energy costs, a slower housing market and poor weather conditions during the latter part of the first quarter," the company said in its earnings release. Sears Holdings does not hold conference calls with analysts as do most of its rivals.
Ahead of this year's annual meeting, Sears Holdings warned that earnings would miss original projections. It forecast then earnings of $1.30 to $1.53 a share, and net income from $200 million to $235 million.
This is in line with the results reported from Wal-Mart and other retailers. The article goes on to state Sears is about to begin a major marketing campaign. It looks like they need it right now.
