The Stronger Side of Sears

Sears, Roebuck reported an increased third-quarter net income in 2000 of $278 million, compared with reported 1999 third-quarter net income of $236 million. And even excluding an extraordinary $29 million charge in last year's third quarter related to staff reductions and the exit from certain automotive retail markets, third quarter 2000 earnings per share are 17 percent higher than a year ago.

The Hoffman Estates, Ill., retailer says that the increase in earnings was “primarily due to the continuing strength of the credit business coupled with the company's share repurchase program.” (The company repurchased 6.4 million shares during the quarter.) Credit operating income increased by 21.8 percent primarily due to substantial reductions in selling and administrative expense.

“Our credit business contributed very strong growth in operating income,” said the new president and ceo, Alan Lacy. “Retail results reflect strong sales performance across several important businesses and investments in new retail growth initiatives such as The Great Indoors.”