Sears New Release :: essays research papers

Sears Updates Segment Reporting Adopts New Accounting StandardResulting In One-Time zero(prenominal)-Cash luff Of $520 Million In Second QuarterHOFFMAN ESTATES, Ill., April 12 /PRNewswire/ -- Sears, Roebuck and Co.(NYSE S) announced summarise domestic salt away revenues for the five weeks endingApril 7, 2001 were $2.56 trillion. Comparable domestic store revenuesdecreased 5.3 percent. Total domestic store revenues decreased 5.1 percentcompared with $2.7 billion for the five weeks ending April 8, 2000."March sell sales fell beneath expectations, with the slowing economy andcolder than anticipated weather having an impact on both(prenominal) our hardlines andsoftlines byplayes," said Chairman and Chief Executive Officer Alan J. Lacy."Weather-related seasonal adorn and lawn and garden sell accountedfor over one-third of the comparable store sales decline. Among the betterperforming businesses was Home Appliances, which continues to gain market carry on. The Great indoors format and sporting goods businesses also performedwell."Sears, Roebuck and Co.5 Weeks 9 Weeks2001 Domestic insert Revenues $2,563,400,000 4,530,800,0002000 Domestic Store Revenues 2,701,000,000 4,697,600,000 portion 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 foremost fiscal draw and quarter 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, direct income from the credit business for the first quarter will be middling below last year, mainly delinquent to lower 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 thanexpected leak weather in mu ch of the country.Sears Revises Segment ReportingFASB Statement No. 131 prescribes accounting guidance for segmentreporting and requires that a companys externally report 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 operatestrategy and to align externally reported business segments with changes thathave occurred in the companys internal structure over the past severalmonths. The companys four invigorated segments are as follows- Retail and Related Services -- This segment consists of merchandisesales and related services, including service contracts, delivery andproduct installation and jam services. It covers all Sears sellingchannels, including specialty and full-line stores as well as direct-to-client operations which includes online, catalogs and clubs andservices.- Credit and Financial Products -- This segment includes Sears domesticcredit business and the companys related financial product offerings.- Sears Canada -- Formerly named the International segment, this segment