Gross margins were flat in spite of a fairly easy comparison because of pressure from Reward Zone.

We're looking for expenses that are coming in line and gross margins that are working, and that's what we saw. These results give us more confidence that Sears can continue to improve earnings in 2006.

Disappointing gross margins muted fourth-quarter results.

You look at his game from when he was a rookie to now and there's no comparison. He can flat-out score. In the post, on the perimeter he can score. Now he's getting the mid-range game going.

We are examining each of our product categories to determine how we can improve revenues, return gross margins to 20% percent or higher, and reduce operating expenses as we target a return to profitability in the second half of the calendar year.

The silver lining here is that these results could spur management to take more drastic action to address its cost structure and merchandising problems.