Aug. 20 (Bloomberg) -- Sears Holdings Corp., the biggest U.S. department-store company, fell 12 percent in Nasdaq trading after reporting an unexpected second-quarter loss.

Excluding some items, the loss was 17 cents a share. Analysts had projected profit of 35 cents, the average of six estimates compiled by Bloomberg.

Sales at U.S. Sears stores open at least 12 months declined 13 percent as consumers bought fewer washers, dryers and refrigerators and clothing, the Hoffman Estates, Illinois-based company said today in a statement. Same-store sales at Kmart fell 3.9 percent.

“This was a much weaker quarter than anyone expected,” said Richard Hastings, an industry analyst with Global Hunter Securities LLC in Newport Beach, California. “I’m surprised by the sweeping deterioration throughout most of their core areas.”

Sears declined $8.76 to $65 at 4:10 p.m. New York time in Nasdaq Stock Market trading for the biggest percentage decline since Dec. 1. Through yesterday, they had climbed 90 percent this year.

“The decline at Sears Domestic continues to be driven by categories impacted by housing market conditions,” including home appliances, the company said.

The net loss was $94 million, or 79 cents per share, compared with a profit of $65 million, or 50 cents, a year earlier, the company said. Sales fell to $10.6 billion, below the $10.7 billion average estimate of analysts.

Government Program

Sales may benefit later this year from a $300 million government program for consumers to turn in older refrigerators, washing machines, air conditioners and dishwashers for higher- efficiency appliances, said Chris Brathwaite, a company spokesman. Sears supports the program, he said.

The money was allocated this year through the federal stimulus program, the Association of Home Appliance Manufacturers said in a statement last month. Consumers may receive rebates of as much as $200 for appliances labeled “Energy Star,” the group said.

To contact the reporter on this story: Carol Wolf in Washington at cwolf@bloomberg.net.

Last Updated: August 20, 2009 16:18 EDT