Kmart Holding Corp. (Troy, Mich.) has announced a net loss of $23 million for its third quarter of fiscal 2003, ending October 29.
However, the reorganizing retail giant was quick to point out, that was a substantial improvement over the $383 million net loss of a year earlier.
Net sales were down 21.2 percent from a year ago. Same-store sales declined 8.6 percent. The company said the decrease “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 decrease in total sales is attributable to . . . 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,” said president and ceo Julian Day. “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. 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.”