EARNINGS : K mart Corp. Profits Rise 2%
K mart Corp., one of the nation’s largest retailing companies, said today that its profits edged up 2% in the second fiscal quarter ended Aug. 1 as a result of stronger apparel sales and cost controls.
Second-quarter earnings of $148 million, or 74 cents a share, were up from $145 million, 72 cents a share, last year.
Revenues climbed 11%, to $7.88 billion from $7.09 billion.
Expense controls and higher sales offset negative factors such as a relatively weak retail environment, higher interest expenses and a reduction in gross profit margins, K mart Chairman Joseph Antonini said.
To boost sales, K mart launched a strategy to lower everyday shelf prices, leading to lower profit margins.