Sears Holdings (SHLD) reports and shares hold up

Sears Holdings Corporation (NASDAQ:SHLD) shares are holding their own today, up 4.5% after reporting net income fell 62%. Not a surprise but full-year profit may decline as the U.S. economic slump persists, which makes the 57% Short Float for SHLD extra special.

That huge short float makes it hard for the Masters and investing public to take a risk buying SHLD shares, despite how low they are trading relative to their 52 week range of $67.36 to $152.91.  Then again, Eddie Lampert could be the real reason to pick up shares.

Sales at stores open at least a year fell 6.7 percent at U.S. Sears stores and 5.6 percent at Kmart stores, bringing total U.S. same-store sales down 6.2 percent.

Sears Holdings noted that the second-quarter same-store sales declines were less than those in its first quarter, when the total drop amounted to 8.6 percent. Analysts said the second-quarter numbers were probably helped by consumers spending U.S. tax rebate checks.

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The company added that the lower same-store sales were mainly driven by housing-related products like appliances and tools, but it noted increases in electronics sales.

Sears Holdings, based in Hoffman Estates, Illinois, is trying to restructure its business to draw customers and reverse a year-long earnings slump.

The company posted a surprise first-quarter loss in May and declining profit for the previous three quarters.

If there is a reason to buy SHLD shares, it could be that since the third quarter of fiscal 2005, Sears Holdings has repurchased approximately 38.7 million of their common shares at a total cost of $4.8 billion pursuant to the program.

As of August 2, 2008, approximately 126 million common SLHD shares are outstanding, so how many more will Lampert buy back?  More importantly, when will all those shares sold short stop weighing down the current share price?