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 ...

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