Sears, Roebuck and Co. (NYSE: S) announced today that comparable domestic store revenues decreased 3.1 percent for the five weeks ended July 3, 2004. Total domestic store revenues were $2.55 billion for the five-week period in June 2004, down 4.4 percent compared with the five weeks ended July 5, 2003.
"As we discussed during our off-mall growth strategy announcement, June revenues for Sears, like other retailers, were below expectations due in large part to poor Father's Day demand and unusually cool weather," said Sears Chairman and CEO Alan J. Lacy. "In our home group, Sears experienced moderate growth in seasonal lines such as lawn, garden and patio products, but that was offset by the pronounced decline in air conditioning revenues due to cooler weather."
Apparel revenues were again substandard in June, as the company continued to work through its assortment and inventory issues. Sears expects its apparel offering and inventory to be improved by September as it transitions to fall merchandise. Sears' off-mall formats collectively reported sales growth for the month, led by The Great Indoors and Dealer stores.
Sears, Roebuck and Co. Domestic Store Revenues & Comparable Store Revenues (*According to National Retail Federation Fiscal Calendar.) (**A store is considered to be comparable at the beginning of the 13th month after the store is opened.) Fiscal Period Ending Percent Change July 3, July 5, All Comp 2004 2003 Stores Stores** June $2,548,700,000 $2,664,900,000 -4.4% -3.1% Year-to-Date* $10,678,300,000 $10,990,300,000 -2.8% -1.6%
The company has made available by phone a recorded message on sales performance of its domestic stores for June, as well as the forecasted comparable store sales for the 2004 third quarter, which the company expects to be down slightly from 2003. The message can be heard by calling (847) 286-6111 and will be available for approximately one week.
The forecasted comparable store sales for the 2004 third quarter represents a "forward-looking statement," which is based on assumptions about the future that are subject to risks and uncertainties. Actual results may differ materially from the results projected in the forward-looking statement. Risks and uncertainties that may cause actual results to differ materially include competitive conditions in retail and related services industries; changes in consumer confidence and spending; the success of the full-line store strategy and other strategies; Sears' ability to integrate and operate Lands' End successfully; the successful integration of Sears' retail businesses with Citigroup's operation of the Credit and Financial Products business, which involves significant training and the integration of complex systems and processes; social and political conditions such as war, political unrest and terrorism or natural disasters; general economic conditions and normal business uncertainty. The company intends this forward-looking statement to speak only as of the time of this release and does not undertake to update or revise it as more information becomes available.
Sears, Roebuck and Co. is a leading broadline retailer providing merchandise and related services. With revenues in 2003 of $41.1 billion, the company offers its wide range of home merchandise, apparel and automotive products and services through more than 2,300 Sears-branded and affiliated stores in the U.S. and Canada, including approximately 870 full-line stores and 1,100 specialty stores in the U.S. Sears also offers a variety of merchandise and services through sears.com, landsend.com, and specialty catalogs. Sears is the only retailer where consumers can find each of the Kenmore, Craftsman, DieHard and Lands' End brands together -- among the most trusted and preferred brands in the U.S. The company is the largest provider of product repair services with more than 14 million service calls made annually.
SOURCE: Sears, Roebuck and Co.
CONTACT: News Media Contact, Edgar P. McDougal, +1-847-286-9669, or
Investor Contact, Scott A. Bohaboy, +1-847-286-7419, both of Sears, Roebuck
Web site: http://www.sears.com/