First, the good news: Sears Roebuck's stock returned 120.6% in the year ended Feb. 27. Profits more than doubled. Now for the bad: The surge in Sears shares was driven largely by stock buybacks, which increased earnings per share. The retailer funded the buybacks by selling assets, including its huge credit-card business, which accounted for over half of profits. Cross out proceeds from asset sales, and net income would have fallen 14%. Worse, Lacy has failed to reverse three years of sales stagnation. He'll have to do better: Sears can no longer count on income from plastic.