Sears Skids

Sears, Roebuck & Co. (Hoffman Estates, Ill.) has announced a hefty first quarter loss, mostly due to an accounting change involving its pension and post-retirement medical benefit plans, but also arising from another weak showing for clothing sales.

The retailer said it is continuing efforts to streamline the company to improve efficiency and effectiveness.

Sears suffered an $859 million loss for the three months ended April 3, 2004. The results included an $839 million accounting charge. Revenues fell 12 per cent as a result of last year’s sale of its credit-card unit to Citigroup.

“Our sales performance in the first quarter was mixed,” said chairman and ceo Alan Lacy. “Our strong assortment and value proposition drove improved home group comparable-store sales, while we were disappointed not to fully participate in the industrywide improvement in apparel sales.”

The company said it remains on track to meet its full-year earnings guidance.