Don’t miss Orioles players, John Means & Paul Fry, as they guest host at our Brews and O’s event!

Merchandising group at Sears reports profit


Sears, Roebuck and Co. yesterday reported higher net income in the second quarter, after a deferred charge. Perhaps more significant, the retailer said its key merchandising group rebounded from a loss in the first quarter and posted a profit.

The company's net income rose 0.5 percent to $239.2 million, or 70 cents a share, after a deferred tax charge. Net had been $237.9 million, or 60 cents a share, in the corresponding part of last year. Before the $64.1 million deferred tax charge, this year's net income was up 27.5 percent, to $303.4 million.

Consolidated revenues rose 1.7 percent, to $14.09 billion, from

$13.85 billion in the same quarter last year.

The merchandising group, consisting of stores and catalog operations, is Sears' largest sales and profit contributor. It had a profit of $157 million, up 42.7 percent from $110 million in the 1990 quarter. In the first quarter of this year, the group posted a $37.4 million loss.

Analysts, noting that Sears had produced a profitable quarter despite a 2.9 percent sales decline, said that the giant Chicago-based company was making progress in reducing operating costs but still needed a more successful merchandising focus.

The company's stock rose 75 cents yesterday, closing at $38.50 on the New York Stock Exchange.

Copyright © 2019, The Baltimore Sun, a Baltimore Sun Media Group publication | Place an Ad