Kmart Has Happy Holiday
Heath E. Combs -- Home Textiles Today, January 10, 2005
Boosting its overall profit outlook for the all-important Christmas quarter, Kmart reported strong profitability and cash generation during the holiday season, along with an improving same-store sales picture.
Same-store sales for November and December declined 4.6 percent, with December sales looking even better, slipping just 2.6 percent. While comps continue to decline, it's at a far slower pace than earlier during the year, when same-store sales skidded down at a double-digit pace. During the third quarter, comps dropped off 12.8 percent from the same period a year ago.
“Kmart has taken actions on many fronts to reset baseline sales at a level that forms the basis for profitable growth,” said Aylwin Lewis, CEO. “It is our intention to maintain a substantial base of sales and be significantly profitable at the same time.”