Lampert losing his luster; Sears boss's financial wizardry can't hide retailer's profit plunge.(News)(Financial report)

Crain's Chicago Business, July, 2007

Byline: MONEE FIELDS-WHITE Time is running out for Edward Lampert, the hedge fund manager who controls Sears Holdings Corp. Investors who bid up Sears shares on the strength of Mr. Lampert's reputation as a financial alchemist now see the company for what it is-a struggling retailer. Slack sales and falling profit have knocked 20% off the share price since May, ratcheting up the pressure on Mr.

Lampert to come up with a new strategy that will reverse the slide. Sears' recent announcement that net income will fall by almost half in the second quarter, the first decline since Mr. Lampert took control of the company in March 2005, shows his strategy of boosting earnings through cost cuts is no longer working. Observers say he must move quickly with a new...

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