HOFFMAN ESTATES, Ill., July 8 /PRNewswire-FirstCall/ -- Sears, Roebuck and Co. (NYSE:S) announced today that comparable domestic store revenues decreased 3.1 percent for the five weeks ended July 3, 2004. Total domestic store revenues were $2.55 billion for the five-week period in June 2004, down 4.4 percent compared with the five weeks ended July 5, 2003.

"As we discussed during our off-mall growth strategy announcement, June revenues for Sears, like other retailers, were below expectations due in large part to poor Father's Day demand and unusually cool weather," said Sears Chairman and CEO Alan J. Lacy. "In our home group, Sears experienced moderate growth in seasonal lines such as lawn, garden and patio products, but that was offset by the pronounced decline in air conditioning revenues due to cooler weather."

Apparel revenues were again substandard in June, as the company continued to work through its assortment and inventory issues. Sears expects its apparel offering and inventory to be improved by September as it transitions to fall merchandise. Sears' off-mall formats collectively reported sales growth for the month, led by The Great Indoors and Dealer stores.

Sears, Roebuck and Co. Domestic Store Revenues & Comparable Store Revenues

(*According to National Retail Federation Fiscal Calendar.)

(**A store is considered to be comparable at the beginning of the 13th month after the store is opened.)

Fiscal Period Ending Percent Change July 3, July 5, All Comp 2004 2003 Stores Stores** June $2,548,700,000 $2,664,900,000 -4.4% -3.1% Year-to-Date* $10,678,300,000 $10,990,300,000 -2.8% -1.6%

The company has made available by phone a recorded message on sales performance of its domestic stores for June, as well as the forecasted comparable store sales for the 2004 third quarter, which the company expects to be down slightly from 2003. The message can be heard by calling (847) 286-6111 and will be available for approximately one week.