But this is his first big move toward boosting revenue, and its success is far from certain. A big risk is that Lands' End apparel, priced at the highest range of current Sears offerings, will prove beyond the reach of many Sears customers; another is that the service Lands' End customers are used to will suffer.

Lands' End Creative Director Lee Eisenberg said, "There is to be absolutely no compromise when it comes to quality. Sears wants that attitude."

Lands' End hit choppy water in the 1990s, amid rapid growth and top management upheaval. Profits tumbled some years and soared others. In recent years, sales and profits have recovered. But Mr. Comer, the founder, was becoming less involved in the business, said Peter J. Solomon, chairman of the investment bank that bears his name, who advised Lands' End. Meanwhile, the company was looking for ways to grow. Late last year it began assessing its options, including a possible sale, Mr. Solomon said.

Lands' End approached Sears and a number of other potential buyers, both retailers and nonretailers, Mr. Solomon said. While there was a lot of interest in Lands' End's well-run direct-marketing business, "Sears was really our No. 1 thought," since the two shared a Midwestern heritage, the companies were familiar with each other and Sears needed a strong national brand, Mr. Solomon said. Discussions took about three months, he added.
Though Mr. Lacy said the two retailers have had discussions in the past, both companies declined to comment further on the specifics of the deal. Lands' End said it will reveal more details in the next few days, in documents it plans to file with the Securities and Exchange Commission.

Separately, Sears said it signed an agreement with Martha Stewart Living Omnimedia Inc. to feature the Martha Stewart Everyday brand of housewares in its Canadian stores. Martha Stewart has a well-publicized U.S. deal with Kmart, which currently operates under Chapter 11 bankruptcy-court protection.