Sears Profits Rise, but Guidance Comes Down - TheStreet

Sears

(S) - Get Report

said second-quarter earnings climbed from the same period in 2002, but the retail giant lowered its profit guidance for the full year.

The company earned $309 million, or $1.04 a share, for the second quarter ended June 28, up from $229 million, or 71 cents a share, last year.

Total revenue for the quarter rose to $10.19 billion from $10.14 billion. Retail and related services reported operating income of $183 million, compared with $300 million last year, and revenue for the segment ticked up 0.9% to $7.8 billion.

Same-store sales for the quarter declined 3.5%. In hardlines, lawn and garden had strong showings in both full-line and dealer stores.

"We delivered a solid quarter that was consistent with our expectations," Chairman and CEO Alan Lacy said in a press release. "We are pleased that sales in core businesses such as lawn and garden, tools and apparel have shown signs of strengthening, especially considering the difficult economic environment."

Credit and financial products reported operating income of $355 million for the quarter, up $243 million from the year-ago period. Domestic credit and financial products revenue fell about 4.2% from a year ago to $1.27 billion.

Earlier this week,

Citigroup

(C) - Get Report

agreed to acquire Sears' credit card business for $3 billion.

For the full year, Sears expects its retail segment's operating income to be roughly flat with the previous year, assuming same-store sales are flat to up in the low single digits in the second half. The company now expects full-year earnings of $4.80 to $5 a share, compared with its previous forecast of $4.95 to $5.15.

Analysts expected a profit of 95 cents a share in the second quarter, and Wall Street is calling for earnings of $4.77 for the full year, according to Thomson First Call.