Sears lowers 2nd-quarter earnings guidance after sluggish sales

HOFFMAN ESTATES, Ill. (AP) — Sears Holdings Corp. narrowed its second-quarter earnings guidance Monday and announced its second major share buyback program in a month.

The retailer, which owns Sears and Kmart stores, said it expects profits of $170 million to $185 million, or $1.13 to $1.23 per share, as it struggles with higher markdowns and sluggish sales. Last month, Sears said it anticipated earnings between $160 million and $200 million. Analysts surveyed by Thomson Financial predicted a profit of $1.13 per share.

The Hoffman Estates-based company is scheduled to release financial results by the end of the month.

Sales figures

Sears said Kmart’s domestic same-store sales fell 3.8 percent during the second quarter, largely because of weakness across most categories. Sales at Sears stores slid 4.3 percent, although declines in most categories were somewhat offset by increases in consumer electronics, women’s apparel and footwear.

Same-store sales are an important retail metric that measures sales at locations open at least a year.

Meanwhile Monday, Sears said its board had approved a $1.5 billion share repurchase program. A $1 billion buyback announced July 10 is nearly compete, a spokesman said.

The company has repurchased $3 billion worth of its shares since the third quarter of 2005.

Sears shares climbed $2.90, or 2.2 percent, to $136 in pre-market trading Monday.