K-Mart Holding Corporation (Troy, Mich, U.S.), now parent of K-Mart retail stores, has released the company’s financial results for the third quarter of fiscal year 2003.
The earnings statement shows that its net loss has narrowed, and its margin and operating costs improve its zero borrowing level, which has been sustained during this peak buying season.
For the 13 weeks ended Oct. 29, 2003, K-Mart Holding Corporation reported a net loss of U.S. $23 million, or $0.26 per share. Kmart Corporation last year reported a net loss of $383 million for the 13 weeks ended Oct. 30, 2002.
Loss before interest, reorganization items, income taxes, and discontinued operations was $10 million for the third quarter of 2003, versus a loss of $328 million in the same period a year ago.
Net sales for the 13 weeks ended Oct. 29, 2003, were $5.092 billion, a decrease of 21.2 percent from $6.459 billion a year ago. On a same-store basis, sales declined 8.6 percent for the third quarter of 2003, compared to the third quarter of 2002.
Kmart said the decrease in same-store sales is due primarily to the year-over-year comparison, with several company-wide promotional events that were taking place a year ago, and the reduction in the frequency of mid-week advertising circulars in the current year. The retailr said the decrease in total sales is attributable to the decrease in same-store sales and the closure of 316 stores during the first quarter of fiscal 2003.
"We continue to actively manage our business in a disciplined fashion steadily increasing our margin realization, reducing operating costs, enhancing the productivity of our assets and improving the overall store experience for our customers," Julian C. Day, K-Mart president and CEO, said in a written statement from the company.
"Our focus on profitable sales and a consequent reduction in losses from clearance sales and promotional events resulted in a decrease in same-store sales in the third quarter," Mr. Day continued. "The actions we have taken to drive profitability contributed to a mid-teens decline in November same-store sales, but allowed us to operate the company profitably in November 2003."
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