Reports Q2 (Jul) earnings of $0.21 per share, excluding reserve, $0.12 worse than the First Call consensus of $0.33; revenues fell 4.1% year/year to $11.76 bln vs the $11.71 bln consensus. Comparable store sales declined 6.7% while Kmart's comparable store sales declined 5.6%. Total domestic comparable store sales declined 6.2%.