Retailer’s stock surges on strong profit report

Wednesday, April 10, 2002 | 9:46 a.m.

CHICAGO -- Shares in Sears, Roebuck and Co. surged 7 percent to a four-year high this morning after the retailer reported preliminary first-quarter profits far exceeding Wall Street's estimates.

While describing sales as still "soft," Sears said estimated operating earnings for the quarter more than doubled from a year ago thanks to improved profit margins and lower operating costs.

It pegged earnings, excluding non-comparable items, at 93 cents a share -- up from 45 cents in the first quarter of 2001 and well above analysts' consensus estimate of 61 cents, according to Thomson Financial/First Call.

But Sears' latest results -- including a 4 percent decline in same-store sales from a year ago -- make clear that the $41 billion-a-year company has yet to shake out of its long retail slump.

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