Sears’ Profits Decline 10.4% for ’85

Sears, Roebuck & Co., the nation’s largest retailer, on Wednesday reported a 10.4% decline in profits for 1985 and a slippage of almost 2% for the final quarter. Most of the retreat was attributed to retail sales.

The Sears merchandise group’s fourth-quarter and annual profitswere adversely affected by flat sales in “the most competitive environment in retailing history,” said Edward A. Brennan, chairman and chief executive.

In the fourth quarter ended Dec. 31, Sears recorded a profit of $552.3 million, compared to $563.1 million in the same period a year earlier. Revenue increased to $12.07 billion from $11.37 billion.

For the full year, profit declined to $1.30 billion from $1.45 billion in 1984. Revenue advanced to $40.72 billion from $38.83 billion.

Brennan said 1986 looks as if it may be better.

“This promises to be a year of continued growth in the economy,” he said in a statement. “The rate of increase in disposable income is expected to accelerate, and consumer spending should continue to rise proportionately.”

The company’s merchandise group and Allstate insurance group reported lower earnings for the quarter and year. On the other hand, there were improved performances from the company’s financial-services and real estate divisions.