Sears Holdings Corp said on Thursday that its quarterly profit fell 40 percent as sales declined and the retailer marked down prices for shoppers coping with a tough economy.
Net income for the second quarter ended Aug. 4 was $176 million, or $1.17 per share, compared with $294 million, or $1.88 per share, a year ago.
The company said weaker operating results at Kmart and its domestic Sears stores overshadowed improved results at Canadian Sears stores.
We are disappointed with our second quarter results, said Aylwin Lewis, the company's chief executive, in a statement.
Total revenue fell to $12.2 billion from $12.8 billion a year ago.
The company had a cash position of $2.6 billion at the end of the second quarter, down from $3.7 billion a year ago and $4.0 billion on Feb. 3.