Martha Stewart's legal difficulties have had little impact on sales of her merchandise lines at Kmart, the retailer reports. In a quarterly filing with the Securities and Exchange Commission, the Troy, Mich.-based discount retailer said despite Stewart's indictment on stock-trading charges earlier this month, “we have not experienced any significant adverse impact from this matter on the sales of her brand product lines.”
The company also reported quarterly results for the first time since emerging from bankruptcy protection last month. Kmart's net sales for the quarter ended April 30 were $6.18 billion, down 13.9 percent from the same period a year earlier, and same-store sales at outlets open at least a year declined 3.2 percent from a year earlier. However, the company did sharply reduce its net loss for the quarter, cutting that figure to $862 million, down from $1.44 billion a year earlier.
Julian Day, Kmart's president and ceo, says the company remains committed to improving its long-term prospects after exiting Chapter 11.
“This management team is very focused on building the financial foundation of the new company,” Day said. “We are strengthening our business by driving profitable sales, identifying opportunities to further improve efficiency and reduce costs.”