Searsucker

17 March 2006 By Rob Cox Follow @rob1cox

But shareholders don t have as much to cheer about one year on from the vaunted KmartSears deal of one year ago. Investors appear now to believe Lampert will harvest Sears for cash rather than break it up. But some fear this may be a risky strategy.

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Sears Holdings this week said fourthquarter profit more than doubled as the retailer cut back on capital expenditures at its Sears and Kmart stores.

While sales stabilized at its Kmart stores, those at Sears fell. In the quarter Sears earned $648m, or $4.03 a share, up from $309m, or $3.09 a share.

The company was formed when shareholders approved the Sears takeover of Roebuck by Kmart on March 24, 2005.

Revenue fell 4.5% to $16.1bn from $16.8bn on a proforma basis. Samestore sales rose about 1% at Kmart, its first increase since it sought Chapter 11 bankruptcycourt protection in early 2002. Samestore sales fell more than 12% at Sears.

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