Topic Author
Posts: 1368
Joined: Sat Jul 24, 1999 6:10 pm

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!
Posts: 3094
Joined: Tue May 18, 1999 6:40 am

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.

Posts: 3876
Joined: Sun Apr 30, 2000 12:37 pm

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
Posts: 7589
Joined: Fri Feb 18, 2000 3:12 pm

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
Posts: 1731
Joined: Fri Nov 03, 2000 7:16 am

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
Posts: 5389
Joined: Sat Oct 27, 2001 3:24 am

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"

Who is online

Users browsing this forum: aerlingus747 and 26 guests

Popular Searches On

Top Photos of Last:   24 Hours  •  48 Hours  •  7 Days  •  30 Days  •  180 Days  •  365 Days  •  All Time

Military Aircraft Every type from fighters to helicopters from air forces around the globe

Classic Airliners Props and jets from the good old days

Flight Decks Views from inside the cockpit

Aircraft Cabins Passenger cabin shots showing seat arrangements as well as cargo aircraft interior

Cargo Aircraft Pictures of great freighter aircraft

Government Aircraft Aircraft flying government officials

Helicopters Our large helicopter section. Both military and civil versions

Blimps / Airships Everything from the Goodyear blimp to the Zeppelin

Night Photos Beautiful shots taken while the sun is below the horizon

Accidents Accident, incident and crash related photos

Air to Air Photos taken by airborne photographers of airborne aircraft

Special Paint Schemes Aircraft painted in beautiful and original liveries

Airport Overviews Airport overviews from the air or ground

Tails and Winglets Tail and Winglet closeups with beautiful airline logos