Kmart Reports $224 Million 3Q Loss
DETROIT (AP) _ Kmart Corp.’s third-quarter loss tripled, but the discount retailer still beat Wall Street’s expectations.
The company said Tuesday it lost $224 million, or 45 cents per share, in the three months ending Oct. 31, compared with a loss of $67 million, or 14 cents a share, in the year-ago period.
Excluding a hefty restructuring charge, the nation’s No. 3 retailer lost $127 million, or 25 cents per share, in the quarter.
Analysts surveyed by Thomson Financial/First Call expected a loss of 27 cents per share.
``We continue to work at fixing our core business by being in-stock, pricing competitively and providing an excellent shopping experience for Kmart customers,″ Chuck Conaway, chairman and chief executive, said in a statement. ``We have made considerable progress in all of these areas but have a lot more work to do.″
In the 18 months Conaway has been at the helm, he has closed unproductive stores and made other changes to help the Troy-based retailer become more productive and more efficient. But the company has struggled to regain profitability.
Sales fell 2 percent to $8.02 billion from $8.20 billion in the year-ago period. Sales at stores open for at least a year, known as same-store sales, were down 1.5 percent.
For the nine months ended Oct. 31, Kmart lost $344 million, or 70 cents per share, compared with a loss of $493 million, or $1 a share, in the comparable year-ago period. Revenue was slightly lower at $25.27 billion, from $25.39 billion.
The results were released before trading began on Tuesday. On Monday, shares of Kmart were unchanged at $6.85 in trading on the New York Stock Exchange.
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Kmart Corp.: http://www.bluelight.com