Sears Roebuck’s 2nd-Quarter Profit Soars 17%

Sears, Roebuck & Co. reported a better-than-expected 17% profit increase in the second quarter as solid growth in its credit business and demand for appliances and electronics helped offset sluggish clothing sales. The nation’s second-largest retailer, which said July 6 it would exceed forecasts of 99 cents, said earnings rose to $388 million, or $1.11 a share, well beyond the revised $1.05-a-share average estimate of analysts polled by First Call. Revenue grew 5% to $10.08 billion. Profit in the credit card business jumped 26% on higher sales of securities backed by revenue from credit card accounts and stepped up collection efforts. Profit was up 9.8% at Sears stores, on a 4.2% rise in revenue to $7.29 billion. Chairman Arthur Martinez said clothing sales aren’t expected to pick up in the second half. Sears shares fell $1.63 to close at $32.13 on the NYSE.