Kmart Corp. posted a loss of $3.22 billion for last fiscal year, saying the loss was fueled by restructuring and store-closing costs as it tries to emerge from bankruptcy by the end of next month.
However, it said the preliminary results for the first month of this fiscal year in the aftermath of its bankruptcy filing suggest to it that things are improving.
"Although this company has a long way to go, we are encouraged by February's results, which demonstrate signs of progress," said Julian Day, Kmart's CEO, noting that the company hopes to be profitable again sometime next year.
Sales for the year ended Jan. 29 dropped to $30.76 billion from $36.15 billion in 2001.
However, it said the preliminary results for the first month of this fiscal year in the aftermath of its bankruptcy filing suggest to it that things are improving.
"Although this company has a long way to go, we are encouraged by February's results, which demonstrate signs of progress," said Julian Day, Kmart's CEO, noting that the company hopes to be profitable again sometime next year.
Sales for the year ended Jan. 29 dropped to $30.76 billion from $36.15 billion in 2001.
- KC's View:
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In our view, while Kmart certainly has a long way to go, what it doesn’t realize is that it is heading in the wrong direction. It’s spending so much time stripping out expenses, closing stores, and laying off employees that it doesn’t seem to be paying attention to the idea that it needs to create better, more engaging stores and hire people who can create a differential advantage at store-level.
It talks about redesigned formats, but that doesn’t seem to get at the fundamental problems that Kmart has in its stores.
Until it does that, it’s all much ado about nothing.
