Sears Holdings Corp., the parent of Sears and Kmart, reported lower profit for the fourth quarter of 2010 and a drop in comparable store sales. It also ended a three-year search to name Lou D'Ambrosio chief executive officer and president of the company.

The one-time chief executive of Avaya Inc. succeeds interim CEO W. Bruce Johnson and joins the board of directors Thursday.

For the fourth quarter, net income declined to $374 million, or $3.43 per share, from $430 million, or $3.74 per share, for the same period in 2009. Total revenue dipped to $13.1 billion from $13.2 billion. Domestic same-store sales declined 1.2%. Kmart same-store sales rose 2.5%,  which was offset by a decline at domestic Sears stores of 4.5%.

Sears said the Kmart increase was driven by increases in apparel, footwear, jewelry, sporting goods and toys, partially offset by declines in the food and pharmacy. At Sears, more than half of the total same-store sales decline occurred in consumer electronics.

D'Ambrosio, who led Avaya from 2006 through a going private transaction and delivering returns to shareholders, stepped down from the CEO post in 2008 for medical reasons. Over the last six months, D'Ambrosio has worked closely with Sears Holdings as a consultant.