Kmart Reports $3 Billion Loss in 2002

Kmart Corp. (Troy, Mich.), on the brink of its expected emergence from bankruptcy protection after a year in Chapter 11, announced a 15 percent drop in total sales for the year ending Jan. 29, 2003. Same-store sales declined 10.1 percent.

The discount retailing giant reported a net loss of $3.22 billion for the year. In fiscal 2001, it lost $2.45 billion.

Kmart closed 283 underperforming stores, or 13 percent of its existing store base, in the second quarter of 2002, and plans an additional 316 closings in 2003.

“In addition to the company's Chapter 11 filing in January of last year, Kmart's 2002 financial results reflect the impact of significant charges associated with our restructuring efforts as well as a decrease in sales associated with the store closings and reduced customer traffic,” said president and ceo Julian Day. “As we draw closer to emergence from Chapter 11, we remain focused on achieving a cost structure and organization that is aligned with our reduced store base. Our objective is to ensure that the company emerges from the reorganization process with a restructured balance sheet, stronger store portfolio and efficient, cost-effective organization positioned to compete in the discount retail sector. Our fast-track reorganization timetable remains on schedule, as we expect to emerge from Chapter 11 on or before April 30, 2003.”