Kmart posts losses after Ch. 11 filing
April 8, 2002,
TROY, MI — In the first nine days after filing for Chapter 11 bankruptcy protection late in January, giant discounter Kmart Corp. recorded a loss of $579 million, and in the four weeks following lost another $174 million, bringing its total losses through Feb. 27 to $753 million.
Contributing to the nine-day loss of $579 million in the closing days of January just before it made its bankruptcy filing, the retailer said it incurred $311 million in bankruptcy and restructuring charges, as well as an income-tax expense of $815 million.
Kmart said it put up $2.2 billion in sales during February, but also noted that the crucial gauge of same-store sales, the acid test of a retailer's performance, dropped by 10.8 percent during the month as consumers shied away from its stores. In stark contrast, rival Wal-Mart Stores posted a larger-than-expected increase of 10.3 percent in same-store sales, doubtless pulling customers away from Kmart. Target discount stores also gained on Kmart's misfortune, its same-store sales rising by 10 percent for the month.
KEY FEBRUARY RESULTS
|Average gross margin||17.5%|
|Operating loss||$147 million|
|Bankruptcy costs||$16 million|
|Restructuring & other costs||$2 million|
|Interest expense||$9 million|
|Net loss||$174 million|
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