"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.