Sears, Roebuck & Co. reported annual net income of $1.65 billion, up 22.1% from a year earlier. Annual revenue rose 9.4% to $48.4 billion from 1986. For the full year, profit rose 7% for the merchandise group, 28% for its Allstate insurance unit and declined by 0.07% for Coldwell Banker. Dean Witter posted an annual profit of $1.2 million, contrasted with a loss of $37 million in 1986 despite higher losses for its Discover credit card operations. The annual results included $59 million in restructuring charges in the retailing unit and $237.9 million in tax-related gains for Allstate.