Sears profit is lowest in 2 years

Sears Holdings Corp. posted its lowest profit in nearly two years after another round of weak sales at Kmart and Sears stores sent the retailer’s net income tumbling 40%.

Led by hedge fund wizard Ed Lampert, Sears has seen much of its recent financial success boosted by investment income.

But after months of curtailing expenses, the company continues to be vexed by falling sales and profit margins.

Net income for the period that ended Aug. 4 fell to $176 million, or $1.17 a share, from $294 million, or $1.88, a year earlier, when the company was helped by a one-time gain. Revenue dropped 4% to $12.24 billion.

Analysts surveyed by Thomson Financial expected earnings of $1.13 a share and revenue of $12.32 billion after the company narrowed its financial projections this month. The analysts’ estimates typically exclude one-time items.

Sears stock fell $3.78, or 2.6%, to $141.83.