Exhibit 11
SEARS, ROEBUCK AND CO.
AND CONSOLIDATED SUBSIDIARIES
COMPUTATION OF EARNINGS PER COMMON SHARE
Year Ended
-----------------------------
(millions, except per common share data) 1996 1995 1994
EARNINGS
Income from continuing operations $ 1,271 $ 1,025 $ 857
Discontinued operations - 776 402
Extraordinary gain (loss) - - 195
------- ------- -------
Net income 1,271 1,801 1,454
Preferred share dividends (25) (29) (29)
------- ------- -------
Net income applicable to common shares $ 1,246 $ 1,772 $ 1,425
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES (1)
Primary 399.1 394.0 388.9
Fully dilutive effect of stock options -
after application of treasury stock method - - -
-------- ------- -------
Maximum number of common and common
equivalent shares outstanding 399.1 394.0 388.9
-------- ------- -------
-------- ------- -------
EARNINGS PER COMMON SHARE (1)
PRIMARY
Income from continuing operations $ 3.12 $ 2.53 $ 2.13
Discontinued operations - 1.97 1.03
Extraordinary gain - - 0.50
------- -------- -------
Net income $ 3.12 $ 4.50 $ 3.66
------- -------- -------
------- -------- -------
FULLY DILUTED (3)
Income from continuing operations $ 3.12 $ 2.53 $ 2.13
Discontinued operations - 1.97 1.03
Extraordinary gain - - 0.50
------- ------- -------
Net income $ 3.12 $ 4.50 $ 3.66
------- ------- -------
------- ------- -------
<FN>
(1) Series A Mandatorily Exchangeable Preferred Shares are considered common
shares for purposes of computing weighted average number of common shares.
(2) The maximum dilution of earnings per common share assumes the exercise of
all outstanding stock options. The treasury stock method has been applied based
upon the higher of the closing price at fiscal year end or the average price of
the common shares during the respective years.
(3) Fully diluted earnings per common share are not disclosed in the Company's
financial statements in accordance with APB Opinion No. 15 since the maximum
dilutive effect is less than 3%.
</FN>