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Kmart Posts 1.45 Billion Loss

Sat Jun 15, 2002 5:55 pm

"Bankrupt retailer Kmart Corp. Friday posted a $1.45 billion quarterly loss, as it took massive charges from closing stores and saw sales slide further."

THE DISCOUNT CHAIN reported a net loss in the 13 weeks ended May 1 of $2.88 per share, sharply wider than a net loss of $233 million, or 48 cents in the year-earlier quarter.
Excluding one-time and reorganization items, Kmart said its net loss was $408 million, or 81 cents per share, compared with a net loss of $218 million, or 45 cents a year ago. It recorded a $758 million charge to write down inventory in the 283 stores it closed in the first quarter.
Net sales in the period declined 8.4 percent to $7.64 billion, from $8.34 billion a year earlier. Same-store sales slid 8.8 percent. Excluding the stores it shuttered, same-store sales dropped 11.7 percent.
As of May 1, Kmart, which filed for Chapter 11 bankruptcy in January, said it had about $1.1 billion in available cash and about $1.6 billion available under its debtor-in-possession credit facility.

© 2002 Reuters Limited.

Does anyone else feel Kmart is in its last days? I find this quite facinating that their cost cutting has resulted in even further losses. I for one have no sympathy for Kmart as a whole, but I do feel for all the workers that would be out of jobs if Khell really went under.


RE: Kmart Posts 1.45 Billion Loss

Sat Jun 15, 2002 6:31 pm

there not dead yet! someone should just kill them!
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RE: Kmart Posts 1.45 Billion Loss

Sat Jun 15, 2002 6:37 pm

k-MART fills a niche. I never had a bad experience there.

The problem I see is that many stores such as the one in Vero Beach are old and in need of renovation. They are downright gloomy and depressign to shop in, while Wal-Mart just put in a new Super Mart. No one in their right mind would choose to shop at the old K-mart vs. the new Wal-mart (also open 24 hours and sells groceries.

Wal-Mart has catchy advertising campains, as well as Target.

I don't think we'll see the end of K-Mart. But it will be a small fraction of what it was a few years ago. However I wouldn't be suprised if they went under.


RE: Kmart Posts 1.45 Billion Loss

Sat Jun 15, 2002 9:56 pm

Things don't look good for Kmart. No amount of cost-cutting will do much good if they continue to have a reputation as the inefficient company with ugly stores that runs out of stock.

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RE: Kmart Posts 1.45 Billion Loss

Mon Jun 17, 2002 3:38 am

That's a big loss!! But I'm sure they'll come back soon.
Work Hard But Play Harder
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RE: Kmart Posts 1.45 Billion Loss

Mon Jun 17, 2002 4:40 am

Maybe Martha Stewart can raise some money using her insider stock tips.

But seriously. K-Mart has come and gone. They were a dynamic retailer in the 70s and early 80s when they scared the crap out of traditional retailers like Sears and Montgomery Ward's. However Walmart and Target have beaten K-Mart at their own game. While K-Mart had large numbers of older, less desirable stores, Wal-Mart and Target were fast building and entering markets with large new stores, good products and top notch advertising campaigns. K-Mart has the image of having crappy stuff and ugly stores. Even the Martha Steward line of towels, linens and home accessories was not able to shake it.

K-Mart is a good organization in my mind. I worked a summer in one of their newer stores back in high-school. Some of the folks there have been there for a long time. The story was that the Store Manager started 32 years earlier as a porter.
Stop drop and roll will not save you in hell. --- seen on a church marque in rural Virginia
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RE: Kmart Posts 1.45 Billion Loss

Mon Jun 17, 2002 10:38 am

HA. I hate that store, and good riddance.
The Ohio Player
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RE: Kmart Posts 1.45 Billion Loss

Mon Jun 17, 2002 11:55 am

I don't believe that K-Mart is going to fail completely anytime soon, if for no other reason that they have some stores in excellent locations. They pre-dated Wal*Mart and Target in many markets and therefore were able to snap up the best locations. The company does, however, have to close far more stores than they actually did - while some stores are in very good locations, many others definitely aren't. I'd say offhand that they should close at least another 250 to 300 stores on top of the ones already announced.
"Let me think about it" = the coward's way of saying "no"

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