Sears Holdings Corporation announced domestic comparable store sales for the nine-week period ended December 31, 2005 for its Kmart and Sears stores.
Kmart comparable store sales increased by 1.0 percent as higher apparel sales were partially offset by a decline in home goods.
Sears domestic comparable store sales declined by 11.9 percent reflecting a reduction in certain promotional events intended to improve gross margin and poor apparel sales due to weaker than anticipated customer response to fashion offerings.
In its Current Report on Form 8-K furnished to the SEC on December 6, 2005, Holdings reported pro forma net income of $589 million, or $3.61 per fully diluted share, for the 13 weeks ended January 26, 2005.
The pro forma results were prepared as though Kmart and Sears had been combined as of the beginning of 2004 but were not adjusted to reflect any operating efficiencies that have been, or may be realized as a result of the combination.
Holdings currently expects that net income for its fourth quarter ending January 28, 2006 will be between $570 million and $635 million, or between $3.55 and $3.95 per fully diluted share.
The results contemplate an estimated $15 million of pretax gains ($9 million after-tax) from the sale of assets during the quarter.
The earnings estimates do not include the approximately $40 million pretax gain ($25 million after-tax) from the sale of the Kmart headquarters which closed on December 20, 2005 and which gain will be recognized for accounting purposes when the subdivision of the property is recorded by the municipality.
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