Sears Holdings warns EPS to drop as much as 51%

SHLD 96.17, -4.06, -4.0%) warned Monday that fourth-quarter earnings per share may fall as much as 51% from last year, as nine-week Sears Domestic same-store sales fell by 2.8% and Kmart same-store sales fell by 4.2%. Lower sales were seen across most categories, with notable declines in the Sears apparel and tools categories and the Kmart seasonal categories. It expects fourth-quarter earnings between $2.59 and $3.48 a share, compared to the previous year's fourth-quarter's $5.33. Analysts polled by Thomson Financial had expected fourth-quarter earnings of $4.43 a share. Sears expects to end the year with $1 billion in cash and cash-equivalents, excluding Sears Canada, adding that the expected cash position "does not give effect to any share repurchase activity after Jan. 11."