Sears Sees May Comps Down 4.7% on Memorial Day Shift

Sears, Roebuck and Co. announced that comparable domestic store revenues decreased 3.7% for the four weeks ended May 29, 2004. Total domestic store revenues were $2.08 billion for the four-week period in May 2004, down 4.7% compared with the four weeks ended May 31, 2003.

“The shift of Memorial Day to the June sales month from May in 2003, combined with a slackening in consumer demand across most categories, contributed to results below our expectations,” said Sears Chairman and CEO Alan J. Lacy. “We continue to take significant steps to improve the shopability of our stores, including a systematic resetting of seven major departments this year. In May, we substantially upgraded our Home Fashions presentation, with better merchandise and fixturing in 300 stores.”

Sears experienced sales declines in its home group categories, while the weakness in spring apparel revenues persisted. The company's off-the-mall formats collectively reported flat sales for the month of May.

     Sears, Roebuck and Co.
     Domestic Store Revenues & Comparable Store Revenues
     (*According to National Retail Federation Fiscal Calendar.)
     (**A store is considered to be comparable at the beginning of the 13th
        month after the store is opened.)

                         Fiscal Period Ending            Percent Change
                       May 29,          May 31,         All         Comp
                        2004             2003         Stores      Stores**
     May            $2,078,900,000   $2,180,600,000    -4.7%        -3.7%
     Year-to-Date*  $8,129,600,000   $8,325,400,000    -2.4%        -1.1%