TROY, Mich. -- Kmart's slimmed-down version of itself is paying off, but retail observers said the discount chain still has more work to do to trim the fat and its losses.
Kmart Holding Corp. dramatically scaled back its second-quarter loss from a year ago, helped by deep cost cutting, marking the discount retailer's first reported results since it emerged from Chapter 11 bankruptcy protection in May.
The discount chain said it lost $5 million, or 6 cents a diluted share, in the second quarter ended July 30, compared with a loss of $293 million, or 58 cents a share, in the same period last year. Last year's results include a $14 million charge related to store-closing liquidation sales.
Sales for the quarter fell 21.3% to $5.65 billion and on a same-store sales basis, sales decreased 5.4%. The retailer closed 599 stores during fiscal 2002 and first-quarter 2003 as part of its bankruptcy reorganization.
"We are pleased with the progress we continue to make in our business," Julian C. Day, president and chief executive officer, said in a prepared statement. "We are focused on profitable sales, reduced SG&A, and enhancing the productivity of our assets. As a result, our liquidity position remains strong."