Sears, Roebuck and Co. reported net income of $848 million for its fourth quarter, up from $494 million the year before.
The firm attributed the gain to “improved profitability” in its retail and related services segment, which was partly offset by declines in its credit and financial products operations.
Total revenue for the quarter ended Dec. 28, 2002 was $12.5 billion, up from $12.2 billion last year.
Credit-card problems continued to plague the company.
Sears’ credit card division-–which generates nearly 67% of its profit – foundered for the second straight quarter as it had to set aside even more money, $160 million, to cover the debts of people who couldn’t pay, according to news reports.
Credit card delinquencies increased to 7.69% compared to 7.58% in the year ago quarter.
Overall, the operating income of Sears’ credit card unit fell 14.8% to $63 million from its 2001 levels. Revenues increased 4.4%, to $1.4 billion due to higher average receivable balances. Credit receivables grew 11.5% over 2001 to $30.8 billion.
The firm’s retail and related services segment operating income increased 9.7% to $726 million due to improvements in margin and the acquisition of cataloger of Lands’ End.
For the year ended Dec. 28, 2002, the direct marketer and retailer posted net income, of $1.4 billion, up from $735 million last year. Total revenue for the year was $41.4 billion, up from $41 billion in 2001.
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