Lampert fires back at media, analysts

Lampert fires back at media, analysts

	Published : Fri, 30 Nov 2007 21:39 By : Agencies Print this Story

SCHAUMBURG, Ill. (AP) - Sears Holdings Corp. Chairman Edward Lampert criticized media coverage of his company and Wall Street commentary in a letter to employees Friday, a day after the retailer said its profit plummeted 99 percent in the third quarter.

Following the dismal results, Lampert came under heavy scrutiny by investors who had counted on the hedge-fund guru to turn around the ailing company.

'While we were not pleased with these results, much of the commentary in the media and on Wall Street following the results ignores the strength of our company and the progress that we have made,' Lampert wrote.

The chairman fired back after not commenting in the company's earnings release or holding a conference call a day earlier. The company declined to make him available for interviews.

In the letter, released in a Securities and Exchange Commission filing, Lampert highlighted the company's positive steps over the past several years. He said Sears has reduced its overall debt, invested more than $1 billion on capital expenditures and repurchased more than $3 billion in Sears stock, among other accomplishments.

The chairman said Sears, like other retailers, has struggled with a difficult overall economic environment. Lampert noted that much of Sears' merchandise is related to home improvement, home maintenance and home turnover, which are tied to the struggling housing market.

Lampert also said that Wall Street and the media have held Sears to a tougher standard than other retailers, including Home Depot Inc., Lowe's Cos., Macy's Inc., Kohl's Corp. and J.C. Penney Co.

'When other companies manage expenses carefully, it is often characterized as a sign of good management and prudence,' Lampert said. 'In the case of Sears Holdings, meanwhile, expense controls are often cited as a root cause of poor performance.'

Lampert acknowledged, however, that the company's efforts to add inventory have not resulted in improved sales and profitability, as expected. He said the company is taking steps to decrease inventory.

Sears shares gained $2.01, or 1.9 percent, to $106.10 in afternoon trading. The stock dropped more than 10 percent to close at $104.09 on Thursday after hitting a 52-week low of $98.25 earlier in the session.