Sears ends sales decline

Sears, Roebuck and Co. posted higher same-store sales for the first time in more than two years, but third-quarter profits fell 22 percent on a whopping cost to overhaul its Great Indoors home decor stores.

Net earnings for the three months ended Sept. 27 totaled $147 million, or 52 cents a share, down from $189 million, or 59 cents a share, for the same period in 2002.

Operating earnings were 84 cents per share — 2 cents better than the consensus estimate of analysts surveyed by Thomson First Call.

More significantly, the Hoffman Estates, Ill.-based company enjoyed its first increase in sales from established stores in 10 quarters — a 1.2 percent gain attributed in part to stronger home appliance sales and an improving economy.

Above, a shopper looks at clothing at a Sears store in Chicago.

Retail

Kmart to keep Stewart

Discount retailer Kmart will launch its first new advertising campaign this weekend since emerging from bankruptcy, and style guru Martha Stewart’s collection will get prominent play despite her high-profile legal woes.

Kmart said on Thursday the new campaign would debut Sunday during the second game of major league baseball’s World Series.

Kmart has said the Martha Stewart products were selling well, even after Stewart was charged with securities fraud and obstruction of justice in connection with stock trades of a company run by a friend.

Kmart operates a distribution center in Lawrence.

Economy

Labor report eases fears about weakness in prices

Consumer prices rose by a modest 0.3 percent in September for the second month in a row, mostly reflecting higher gasoline prices that put a dent in motorists’ wallets.

The Labor Department’s latest reading Thursday on the Consumer Price Index, the government’s most closely watched inflation barometer, should ease somewhat Fed policy-makers’ concerns about deflation, an economically dangerous and widespread weakness in prices.

Goodland

Aviation firm to add jobs

Calif.-based Aircraft Seal and Gasket plans to open a manufacturing business in northwest Kansas, adding 105 jobs in the next five years.

The company expects its business to open in late November or early December in downtown Goodland, said Roy Dixon, a consultant who helped bring the company to the city.

He said the company would add 30 jobs in the first year, and 105 during five years. Aircraft Seal and Gasket makes aircraft rear-door hatch seals, air cabin pressurization seals and engine seals. The company serves military and civilian aircraft.