Sears Ends Cosmetics Sales, Avon Agreement

Sears, Roebuck & Co. plans to exit the cosmetics business, ending plans to sell Avon Products Inc. makeup and eliminating its Circle of Beauty brand.

Sears, the largest department-store company, said it will take a second-quarter charge of $53 million, which includes compensation to Avon for the broken agreement. Avon was supposed to start selling its new beComing brand at 125 Sears stores later this year.

The retreat is part of Chief Executive Alan Lacy’s plan to shore up profits by devoting more space in Sears’ 860 department stores to top-selling items such as appliances and digital electronics.

The retailer, based in the Chicago suburb of Hoffman Estates, Ill., will continue to sell some fragrances, bath and body products and candles in most of its stores.

Sears shares fell 15 cents to close at $41.05, and Avon, the largest direct seller of cosmetics, fell 78 cents to $44.47, both on the NYSE.

Avon still plans to sell beComing cosmetics later this year at 75 J.C. Penney Co. department stores.