Sears New Release :: essays research papers

Sears Updates Segment Reporting Adopts New Accounting StandardResulting In One-Time Non-Cash Charge Of $520 Million In Second QuarterHOFFMAN ESTATES, Ill., April 12 /PRNewswire/ -- Sears, Roebuck and Co.(NYSE S) announced total domestic store revenues for the five weeks endingApril 7, 2001 were $2.56 billion. Comparable domestic store revenuesdecreased 5.3 percentage. Total domestic store revenues decreased 5.1 percentcompared with $2.7 billion for the five weeks ending April 8, 2000."March retail sales fell below expectations, with the slowing economy andcolder than anticipated weather having an impact on some(prenominal) our hard rows andsoftlines businesses," said Chairman and Chief Executive Officer Alan J. Lacy."Weather-related seasonal apparel and lawn and garden merchandise accountedfor over one-third of the comparable store sales decline. Among the breachperforming businesses was Home Appliances, which continues to gain marketshare. The Great Indoors format an d sporting goods businesses also performedwell."Sears, Roebuck and Co.5 Weeks 9 Weeks2001 Domestic investment trust Revenues $2,563,400,000 4,530,800,0002000 Domestic Store Revenues 2,701,000,000 4,697,600,000Percent Change (5.1)% (3.6)%Comparable Domestic Stores Percent Change (5.3)% (3.9)%Preliminary Earnings AnnouncementThe company anticipates that earnings per share for the first fiscal delineate of 2001, ended March 31, will be approximately $0.53, versus $0.65 inthe first quarter of last year.In the first quarter, the credit business performed in line withexpectations, reflecting continued strong portfolio quality. However,operating income from the credit business for the first quarter will beslightly below last year, mainly due to set down revenues. The domestic retailbusiness did not meet the companys expectations in the first quarter due tosales and margin shortfalls resulting from the slowing economy and cooler than pass judgment spring weather in much of the country .Sears Revises Segment ReportingFASB Statement No. 131 prescribes accounting guidance for segmentreporting and requires that a companys externally inform segments beconsistent with its internal management structure. Consequently, effectivefor the first quarter of 2001, Sears is modifying its externally reportedsegments to reflect the companys integrated retail and related services strategy and to align externally reported business segments with changes thathave occurred in the companys internal structure over the past severalmonths. The companys four new segments are as follows- Retail and Related Services -- This segment consists of merchandisesales and related services, including service contracts, delivery andproduct installation and repair services. It covers all Sears sellingchannels, including specialty and full-line stores as well as direct-to-customer operations which includes online, catalogs and clubs andservices.- Credit and Financial Products -- This segment includes S ears domesticcredit business and the companys related financial product offerings.- Sears Canada -- once named the International segment, this segment