Kmart takes huge 1Q losses
June 14, 2002,
Troy, MI — With sales falling off by more than 8 percent, then hammered by store-closing and restructuring costs, bankrupt Kmart Corp. posted a first-quarter loss of $1.45 billion.
It was the giant discounter's second straight quarterly loss in excess of $1 billion, following a $1.5 billion loss rung up in the fourth quarter of last year.
Acting as a drag on the bottom line, Kmart recorded $265 million in reorganization items, including store-closing costs of $233 million for lease terminations and ancillary costs. A further hit was taken as the company marked down goods to move out excess stockpiles in liquidation sales. Excluding one-time and bankruptcy-related items, the retailer put up a loss of $408 million.