Bankrupt retailer Kmart loses $1.45 billion in first quarter
Friday, June 14th 2002, 12:00 am
By: News On 6
DETROIT (AP) _ Kmart Corp. lost $1.45 billion in the first quarter as sales fell more than 8 percent and the discount retailer absorbed heavy costs in its first full quarter since filing for bankruptcy protection.
The heavy losses include reorganization costs such as store closings and mark the second straight quarter of billion-dollar-plus losses.
The loss amounted to $2.88 a share for the 13-week period that ended May 1, in contrast to a loss of $233 million, or 48 cents a share, a year ago.
Kmart filed for Chapter 11 bankruptcy protection Jan. 22.
James B. Adamson, Kmart chairman and chief executive, said the losses were significant, but said the company is making progress, particularly in addressing in-stock levels and customer service.
Net sales for the quarter were $7.64 billion, down from $8.34 billion in 2001. Sales at stores open at least a year declined 8.8 percent from the first quarter of 2001. The same-store sales decline was 11.7 percent, excluding the 283 stores that were closed this year.
In the quarter, Kmart recorded a $265 million charge for reorganization costs, such as lease terminations. Excluding nonrecurring and reorganization items, Kmart lost $408 million in the quarter.
For the fourth quarter of 2001, Kmart lost $1.5 billion, or $3.49 per share.
The Troy, Mich.-based company posted a loss of $2.42 billion, or $4.89 per share, for all of 2001.