• February 29, 2008

Sears Holdings, in the midst of a search for a new CEO, reported its fourth-quarter and full-year results, and things are getting tougher for the Hoffman Estates, Ill.-based company.

Net income plunged to $426 million from $811 million in the same quarter a year ago. The company was hit hard not just by declining sales, but also eroding margins, as it continued to mark down prices in an effort to tempt consumers.

Comparable-store sales declined 4.5% in the quarter, with sales at Sears' U.S. stores slipping 4% and Kmart falling 5.2%. For the year, domestic comparable store sales dropped 4% at Sears, and 4.7% at Kmart.

"Our fourth-quarter and full-year results continued to be negatively impacted by the worsening economic conditions faced by both our customers and competitors, as well as increased markdowns taken to clear excess inventory," the company says.

--Sarah Mahoney