SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 2, 1999
SEARS, ROEBUCK AND CO.
(Exact name of registrant as specified in charter)
New York 1-416 36-1750680
(State or Other (Commission File Number) (IRS Employer
Jurisdiction of Identification No.)
Incorporation)
3333 Beverly Road, Hoffman Estates, Illinois 60179
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (847) 286-2500
Item 5. Other Events.
On September 2, 1999, the Registrant issued the press release attached as
Exhibit 99.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
The Exhibit Index on page E-1 is incorporated herein by reference.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
SEARS, ROEBUCK AND CO.
Date: September 2, 1999 By: /s/Julian C. Day
Julian C. Day
Executive Vice President
and Chief Financial Officer
EXHIBITS
99 Sears, Roebuck and Co. press release dated September 2, 1999.
MEDIA CONTACT:
Peggy A. Palter
(847) 286-8361
FOR IMMEDIATE RELEASE:
September 2, 1999
SEARS AUGUST COMPARABLE SALES INCREASE 0.1 PERCENT
Company Revises Earnings Outlook; Announces Management
Initiatives Focused On Reviving Retail Sales Momentum
HOFFMAN ESTATES, Ill. -- Sears, Roebuck and Co. announced today
that its total domestic store revenues for the four weeks ending August
28, 1999 were $2.15 billion. Comparable domestic store revenues
increased 0.1 percent. Total domestic store revenues increased 1.8
percent, excluding the impact of the company's divestitures of Western
Auto and HomeLife. On a reported basis, revenues were 4.7 percent below
revenues of $2.25 billion for the four weeks ending August 29, 1998.
"Although we continued to drive strong increases in categories
such as infants' and toddlers' apparel, home appliances, personal
computers, and big screen and projection TVs, sales in categories such
as lawn and garden, men's and footwear were below the levels of a year
ago, and overall comparable revenue performance for the month was not up
to our expectations," said Chairman and Chief Executive Officer Arthur
C. Martinez.
Revised Earnings Outlook
Due to softness in current retail sales trends and lower than
expected retail gross margin rates, the company expects third quarter
earnings to be in the range of $0.63 to $0.67 per share, excluding non-
comparable items, which is a decrease from the prior year third quarter.
Based on these current trends, the company is revising its full year
outlook for earnings per share to increase at a low-single digit
percentage rate, excluding any non-comparable items.
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SEARS/Add One
"While we continue to expect that our intensified marketing and
merchandising initiatives will positively impact our sales results, we
believe it is appropriate at this time to adjust expectations for 1999
to conform more closely with recent trends until tangible signs of
improvement materialize," said Martinez. "We will stay focused on
execution of these initiatives, intensify our cost reduction efforts and
are also making a number of management changes to sharpen our focus on
Sears retail business." The company anticipates finalizing its plans
and recording a charge for the expected cost of these initiatives in the
second half of the year.
Management Changes
Effective immediately, Alan J. Lacy, 45, president of Sears
Credit, will assume additional responsibilities as president of Services
leading the company's Home Services and e-commerce businesses in
addition to his current role as president of Credit. Julian C. Day, 47,
who served as Sears chief financial officer since March, has been named
to the newly created position of executive vice president and chief
operating officer responsible for finance as well as logistics and
information technology. Lacy and Day join a newly formed Office of the
Chief Executive where they, along with Martinez, will participate in all
principal corporate decision making.
"I am pleased Alan Lacy and Julian Day will be assuming larger
roles managing Sears operations and service businesses," said Martinez.
"Having individuals with their business knowledge supporting these
areas allows me to focus more intensely on critical retail issues."
Also reporting to Martinez in newly created president positions
supporting retail are Lyle G. Heidemann, 54, president of hardlines, and
Mark A. Cohen, 50, president of softlines. Cohen, formerly executive
vice president of marketing, retains responsibility for the company's
retail marketing activities. Mary Conway, 50, recently named president
of stores, also continues to report to Martinez. William L. Salter, 56,
will remain in his role as president of specialty retail, working
closely to integrate Sears specialty stores more closely into its
mainstream retail operations.
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SEARS/Add Two
Robert L. Mettler, 59, president of Merchandising for full-line
stores, has chosen to leave the company.
"We are organizing to provide intense focus on our retail
business," explained Martinez. "Today's announcements demonstrate the
strength of our management team and reinforce our commitment to
reenergizing our sales. Sears retail business has a strong foundation,
and I am grateful for all Bob Mettler's significant contributions to the
revitalization of our merchandising, innovations in brand development
and his strong personal leadership."
Certain statements contained in the revised earning outlook are
forward looking and as such involve risks and uncertainties that could
cause actual results to differ materially. The company's forward-looking
statements are based on assumptions about many important factors,
including competitive conditions in the retail industry, changes in
consumer confidence and spending, the ability of the company to
successfully implement its new marketing campaign and cost reduction
efforts, general United States economic conditions such as higher
interest rates and normal business uncertainty. In addition, the
company typically earns a disproportionate share of its operating income
in the fourth quarter due to holiday buying patterns, which are
difficult to forecast with certainty. While the company believes that
its assumptions are reasonable, it cautions that it is impossible to
predict the impact of certain factors which could cause actual results
to differ materially from predicted results.
Through its network of 850 full-line stores and more than 2,100
specialty stores, Sears provides apparel, home and automotive products
and related services for nearly 60 million American households.
Sears, Roebuck and Co.
4 Weeks 30 Weeks
1999 Domestic Store Revenues $2,146,100,000 $16,027,400,000
1998 Domestic Store Revenues 2,250,900,000 16,696,500,000
Percent Change (4.7%) (4.0%)
Comparable Domestic Stores Percent Change 0.1% 1.0%
1999 Total Revenues $2,930,400,000 $21,959,100,000
1998 Total Revenues 3,029,900,000 22,682,500,000
Percent Change (3.3%) (3.2%)
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