Tuesday, September 17, 2002

Kmart posts $377M shortfall

The Associated Press

        TROY, Mich. - Bankrupt retailer Kmart Corp. posted a loss of $377 million in the second quarter, as sales lagged and the company dealt with the stigma of its Chapter 11 filing.

        Kmart's net loss for the quarter that ended July 31 was the same as the year-ago quarter. The company had a net loss of 75 cents a share in the most recent period, compared with a loss of 77 cents in the second quarter of 2001.

        Excluding one-time charges, closed stores and reorganization items, the Troy-based discount chain reported a net loss of $333 million, or 66 cents a share, compared with a net loss of $304 million, or 62 cents a share, in the year-ago quarter.

        Net sales for the period were $7.52 billion, a decrease of 15.7 percent from $8.92 billion in 2001. As reported, Kmart closed 283 underperforming stores in the second quarter. Sales at stores opened at least a year, known as same-store sales, were down 11 percent for the second quarter.

        Kmart said its summer sales slide continued in July and August, as the retailer reported a net loss of $270 million.

        The company said Monday that its stores lost $144 million in July and $126 million in August - which followed a loss of $137 million in June. It reported July sales of $2.6 billion and August sales of $2.09 billion.

        Same-store sales, were down 13.8 percent in July from the same period in 2001, and down 11.9 percent in August.


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