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WOOLWORTH NET UP 57 PERCENT IN 1992 SECOND QUARTER

 WOOLWORTH NET UP 57 PERCENT IN 1992 SECOND QUARTER
 NEW YORK, Aug. 10 /PRNewswire/ -- Net income of Woolworth


Corporation (NYSE: Z) rose 57 percent to $33 million, or 25 cents per share, in the second quarter ended July 25, 1992, from $21 million, or 16 cents per share, in the corresponding year-earlier quarter, Harold E. Sells, chairman and chief executive officer, reported today.
 For the twenty-six weeks ended July 25, 1992, net income rose to $50 million, or 38 cents per share, from a net loss of $79 million, or 61 cents per share, in the comparable 1991 period. The prior-year net loss included a one-time, after-tax charge of $113 million, or 87 cents per share, due to a change in accounting for postretirement benefits other than pensions.
 REVENUES
 Revenues for the thirteen weeks ended July 25, 1992, were $2,230 million compared to $2,228 million in the corresponding 1991 period. Specialty store revenues rose 1.5 percent while general merchandise revenues declined 1.3 percent. Domestic revenues fell 2.3 percent because prior-year revenues included sales from some 900 United States stores which have been or are scheduled to be closed or redeployed as part of the accelerated store-redeployment program announced in January 1992. On a comparable-store basis, domestic revenues rose 1.2 percent. Foreign revenues, expressed in U.S. dollars, rose 3.2 percent.
 For the twenty-six weeks ended July 25, 1992, revenues declined to $4,326 million from $4,355 million in the corresponding period of 1991. Specialty store revenues rose 1.3 percent but general merchandise revenues declined 2.4 percent. Domestic revenues declined 2.4 percent as a result of the accelerated store-redeployment program. Domestic comparable store revenues, however, rose 1.6 percent. Foreign revenues, expressed in U.S. dollars, rose 1.8 percent.
 If foreign revenues had been translated into U.S. dollars at year- earlier foreign exchange rates for the thirteen and twenty-six weeks ended July 25, 1992, foreign revenues would have increased 2.8 percent and 3.3 percent for the respective periods.
 OPERATING RESULTS
 Operating profit (income before corporate expense, interest and income taxes) for the thirteen weeks ended July 25, 1992, rose 31 percent to $88 million from $67 million in the comparable 1991 period. Specialty store operating profit rose to $67 million from $41 million while general merchandise operating profit declined to $21 million from $26 million. Domestic operating profit rose to $58 million from $39 million and foreign operating profit increased to $30 million from $28 million.
 For the twenty-six weeks ended July 25, 1992, operating profit rose 27 percent to $147 million from $116 million in the comparable period of 1991. Specialty store operating profit rose to $113 million from $65 million while general merchandise operating profit fell to $34 million from $51 million. Domestic operating profit rose to $115 million from $92 million and foreign operating profit rose to $32 million from $24 million.
 Changes in foreign currency translation rates did not have a material effect on operating-result comparisons for the thirteen or twenty-six weeks ended July 25, 1992.
 For both the quarter and year-to-date, virtually every specialty operation recorded operating-profit improvements. The declines in general merchandise operating profit and the small increases in foreign operating profit for the second quarter and first six months reflect the impact of the recession in Germany.
 FINANCIAL POSITION
 Merchandise inventories at July 25, 1992, were essentially flat compared to prior-year levels. Shareholders' equity at July 25, 1992, declined $113 million from the level at July 27, 1991, reflecting the 1991 fourth quarter loss of $128 million which included a $250 million charge due to the accelerated store-redeployment program.
 As of July 25, 1992, the company operated a total of 8,626 stores, consisting of 7,017 specialty stores and 1,609 general merchandise stores. This is a decrease of 343 stores from the 8,969 operated as of July 27, 1991.
 OUTLOOK
 Mr. Sells stated, "We are continuing to see the positive effects of our accelerated store-redeployment program. Our gross margins have improved due, in part, to the closing of poor-performing stores. We expect further improvements in gross margins as we convert the newly freed up space to our most-productive formats, including Foot Locker, Lady Foot Locker, Champs Sports, Northern Reflections and Afterthoughts. We are confident that the upward trend established in the first half will continue for the remainder of the year."
 WOOLWORTH CORPORATION
 CONSOLIDATED STATEMENT OF INCOME
 (in millions except per-share amounts -- unaudited)
 Thirteen weeks Twenty-six weeks
 ended ended
 July 25, July 27, July 25, July 27,
 1992 1991 1992 1991
 REVENUES $2,230 $2,228 $4,326 $4,355
 COSTS AND EXPENSES
 Costs of sales 1,484 1,509 2,877 2,930
 Selling, general
 and administrative
 expenses 606 602 1,200 1,207
 Depreciation and
 amortization 64 62 124 124
 Interest expense 24 22 46 40
 2,178 2,195 4,247 4,301
 INCOME BEFORE INCOME TAXES
 AND CUMULATIVE EFFECT OF
 ACCOUNTING CHANGE 52 33 79 54
 Income taxes 19 12 29 20
 INCOME BEFORE CUMULATIVE
 EFFECT OF
 ACCOUNTING CHANGE 33 21 50 34
 Cumulative effect of change
 in method of accounting for
 postretirement benefits other
 than pensions -- -- -- (113)
 NET INCOME (LOSS) $ 33 $ 21 $ 50 $ (79)
 AMOUNTS PER COMMON SHARE
 Net income before cumulative
 effect of accounting
 change $ .25 $ .16 $ .38 $ .26
 Cumulative effect per
 share of change in method
 of accounting for post-
 retirement benefits other
 than pensions -- -- -- (.87)
 Net income (loss) $.25 $.16 $.38 $(.61)
 Dividends declared
 $ .28 $ .27 $ .56 $ .54
 Weighted-average number
 of common shares out-
 standing 130.5 130.0 130.5 130.0
 WOOLWORTH CORPORATION
 CONSOLIDATED CONDENSED BALANCE SHEET
 (in millions -- unaudited)
 July 25, July 27,(A)
 1992 1991
 ASSETS
 CURRENT ASSETS
 Cash, and cash equivalents at cost
 of $73 and $12 $ 120 $ 61
 Merchandise inventories 2,690 2,677
 Other current assets 363 189
 3,173 2,927
 OWNED AND LEASED PROPERTY
 AND EQUIPMENT, net 1,617 1,617
 DEFERRED CHARGES AND
 OTHER ASSETS 382 312
 $5,172 $4,856
 LIABILITIES AND SHAREHOLDERS' EQUITY
 CURRENT LIABILITIES
 Short-term borrowings $1,100 $1,242
 Accounts payable and
 accrued liabilities 1,056 821
 Current portion of
 long-term debt and obligations
 under capital leases 36 28
 2,192 2,091
 LONG-TERM DEBT AND OBLIGATIONS UNDER
 CAPITAL LEASES 414 239
 DEFERRED TAXES
 AND OTHER LIABILITIES 568 415
 SHAREHOLDERS' EQUITY:
 Preferred stock 1 1
 Common stock and paid-in
 capital 255 247
 Retained earnings 1,599 1,780
 Foreign currency
 translation adjustment 145 84
 2,000 2,112
 Less treasury stock, at cost (2) (1)
 Total shareholders'
 equity 1,998 2,111
 $5,172 $4,856
 (A) Certain amounts have been restated to reflect the change in method of accounting for postretirement benefits other than pensions.
 -0- 8/10/92 R
 /CONTACT: Frances E. Trachter, 212-553-2394, for Woolworth/
 (Z) CO: Woolworth Corporation ST: New York IN: REA SU: ERN


SH -- NY015R -- 8426 08/10/92 10:31 EDT
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Date:Aug 10, 1992
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