Sears Shares Fall 32% on Boosted Reserves

Sears, Roebuck & Co. shares tumbled after the retailer set aside $222 million to cover unpaid credit card bills and blamed the former head of its finance unit for hiding the looming losses.

Sears shares fell $10.80 to $23.15 on the New York Stock Exchange.

Net income dropped to $189 million, or 59 cents a share, from $262 million, or 80 cents, in the year-earlier period. Revenue fell less than 1% to $9.67 billion, the second consecutive quarterly decline.

Sears expects profit, excluding some costs, of $4.86 a share for the year, down from its estimate of $5.15 last week.