Business Insight Zone

I’ve always been impressed with Eddie Lampert’s smarts.* And he may have big, deep plans for the long run about how the cash generated by Sears Holdings will fuel amazing investment returns. But at some point, doesn’t the company have to perform well on its own terms?

Sears Profit Drops,
Bringing Forecasts
Of a Restructuring

Edward S. Lampert, lionized until recently for his ability to turn a ho-hum retailer into a dazzling financial play, finds himself in a box with Sears Holdings Corp.

Falling sales and sharply weaker earnings could force the Sears chairman to restructure the company at a time when weak credit and real-estate markets will make such a move more difficult.

The Hoffman Estates, Ill., retailer yesterday reported third-quarter profit plummeted 99% on a modest sales decline. It also forecast glum year-end results, noting markdowns on bulging inventories would hurt margins in what is historically the company’s most profitable quarter.

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* A quick search uncovers these posts I’ve written related to Lampert:

• Interesting re Eddie Lampert.
• Just how smart is Eddie Lampert?
• Oooh, I love me some buyout rumors . . .

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