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Sears' Net Income Falls on Higher Costs
HOFFMAN ESTATES, Ill. (AP) -- First-quarter net income is down 38 percent at Sears Holdings because of thinner profit margins at its Sears chain, which were squeezed by discounts on appliances.

The discounts offset a turnaround in revenue at the retailers' Sears and Kmart stores, breaking a long string of declines at Sears stores. It was Kmart's third consecutive quarter of rising revenue at stores open at least a year.

The Hoffman Estates-based retailer today says its net income fell to $16 million in the quarter ending May 1. That's down from $26 million a year earlier.

The thinner profit margins are a setback to a company that's posted rising net income in recent quarters, a result of closing stores and slashing expenses.

(Copyright 2010 by The Associated Press. All Rights Reserved.)
05 20 10 by Newsroom
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