Sears names new CEO
U.S. firm’s profit up 4.5%, but sales slump continues
CHICAGO— Sears Holdings Corp., the Number 3 U. S. retailer, named Aylwin Lewis to replace Alan Lacy as chief executive yesterday and announced that chairman Edward Lampert will take a more active role in daytoday management. The moves came as Sears reported a disappointing $ 161 million ( U. S.) profit from its first full quarter after Kmart Holding Corp. acquired Sears, Roebuck & Co. The second- quarter results reflected continuing sales declines at both chains and sent Sears’s stock down $7.04 to $ 127.81. Lampert will direct the marketing, merchandising, design and online businesses of Sears Holdings as well as its Lands’ End casual- clothing unit.
Lewis, the former head of Kmart and of Sears’s retail business, takes over as CEO and president Sept. 30. He will have responsibility for the 3,900 stores and other duties.
Lacy headed Sears, Roebuck & Co. from 2000 until its March acquisition by Kmart and has been CEO the past six months. He will continue to serve as vice-chairman and a director. Lacy overhauled Sears’s fullline stores, but he was unable to stem a long- term sales slump.
Sears’s second- quarter net income grew to $ 161 million, or 98 cents per share, from $ 154 million, or $ 1.54 per share, a year ago. Included are $42 million of merger restructuring costs. Analysts had expected earnings of $ 1.36 per share. Total revenue rose to $ 13.19 billion from $ 4.8 billion last year, due primarily to the addition of Sears Roebuck revenue of $ 8.6 billion. Kmart revenue decreased. Sears Roebuck’s domestic sales declined 3 per cent for the quarter.