USA: Sears Reports Record Second Quarter Earnings
Sears, Roebuck and Co's (NYSE: S) retail and credit businesses helped boost second-quarter net income by 29 per cent on a per share basis, the company reported today. Second quarter 2000 net income stands at $388m, or $1.11 per share. This compares favourably with last year's second quarter net income of $331m, or $0.86 per share. Sears' share repurchase programme was also credited for the strong financial performance. In retail, robust hardlines sales and improved selling and administrative expenses resulted in operating income growth of 9.8 per cent over the second quarter of the prior year. Credit operating income increased by 26.3 per cent due to higher revenues, improved portfolio quality, securitization activity, and reductions in selling and administrative expense. Operating income in the company's home services business also improved over 1999. "We continue to benefit from the strength of our retail and credit businesses, which both contributed to strong growth in operating income and record earnings this quarter," said chairman and chief executive officer Arthur C. Martinez. "In our retail business, we posted solid sales growth and lower selling and administrative expenses, while our credit business saw further improvement in portfolio quality and lower operating costs. Our strong cash flow allowed us to repurchase over 10 million shares of Sears stock during the quarter and our return on equity over the last twelve months has expanded to 25.1 per cent." For the first six months of 2000, net income was $623m or $1.76 per share, compared with $477m or $1.24 per share for the first half of last year, an increase of 42 per cent on a per share basis.
Get full access to all content, just $1 for 30 days
A Message From The Editor
just-style gives you the widest apparel and textile market coverage.
Paid just-style members have unlimited access to all our exclusive content - including 16 years of archives.
It’s our best ever membership offer – just for you.
Leonie Barrie, editor of just-style
- Steps to piloting living wage in garment factories
- How to ensure sustainability is more than a slogan
- US apparel retailers' November 2016 sales roundup
- Trump blows the case for Brexit out of the water
- Why do modern robotics elude sportswear makers?
- US Q3 in brief – Sears, Vince Holding, Genesco
- Esquel efficiency drive continues to boost brands
- Taiwan textile maker investing in first US plant
- Outdoor apparel sector set for double-digit growth
- Myanmar garment industry "lacking labour rights"