Sears Lowers 2Q Guidance

Hoffman Estates, IL, August 13, 2007–Sears Holdings narrowed its second-quarter earnings guidance, in part due to higher markdowns and a drop in Kmart and Sears domestic same-store sales.

The company now expects net income in a range of $170 million to $185 million, or $1.13 to $1.23 per share. It previously forecast earnings between $160 million and $200 million.

Analysts predict a profit of $1.13 per share, according to a Thomson Financial survey.

Sears Holdings said its second-quarter Kmart domestic same-store sales fell 3.8% on weakness across most categories. Sears same-store sales slid 4.3%t, with declines in most categories partially offset by increases in consumer electronics, women’s apparel and footwear.