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WOOLWORTH REPORTS 1992 FIRST QUARTER RESULTS

 WOOLWORTH REPORTS 1992 FIRST QUARTER RESULTS
 NEW YORK, May 6 /PRNewswire/ -- Net income of Woolworth Corporation


(NYSE: Z) rose to $17 million, or 13 cents per share, in the first quarter ended April 25, 1992, from a net loss of $100 million, or 77 cents per share, in the prior-year period, it was reported today by Harold E. Sells, chairman and chief executive officer. 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 April 25, 1992, declined 1.5 percent to $2,096 million from $2,127 million in the comparable 1991 period. Specialty store revenues rose 1.1 percent and general merchandise revenues declined 3.5 percent. While total domestic revenues fell 2.5 percent, domestic comparable store revenues rose 2.0 percent. Foreign revenues, expressed in U.S. dollars, increased 0.1 percent. If foreign revenues had been translated into U.S. dollars at year-earlier foreign exchange rates, they would have increased 3.9 percent, and total revenues would have increased 0.1 percent.
 Revenues for the first quarter of 1992 exclude sales of some 900 United States stores scheduled to close as a part of the accelerated store redeployment program announced in January 1992.
 OPERATING RESULTS.
 Operating profit (income before corporate expense, interest and income taxes) for the thirteen weeks ended April 25, 1992, rose 20 percent to $59 million from $49 million in the corresponding year- earlier period. Specialty store operating profit increased to $46 million from $24 million, and general merchandise operating profit decreased to $13 million from $25 million. Domestic operating profit rose to $57 million from $53 million, and foreign operating profit rose to $2 million from an operating loss of $4 million in the prior-year period. Changes in foreign currency translation rates did not have a material effect on operating-result comparisons.
 FINANCIAL POSITION.
 Merchandise inventories and short-term borrowings were substantially unchanged from prior-year levels. Shareholders' equity declined $198 million to $1,948 million on April 25, 1992, from $2,146 million on April 27, 1991. This decline is primarily due to an after-tax restructuring charge of $250 million recorded in the fourth quarter of 1991. As of April 25, 1992, the company operated a total of 8,530 stores, consisting of 6,916 specialty stores and 1,614 general merchandise stores. This is a decline of 224 stores from the 8,754 operated as of April 27, 1991.
 RECENT DEVELOPMENTS AND OUTLOOK.
 On April 8, 1992, the board of directors declared a 3.7 percent increase in the quarterly cash dividend on common stock, to 28 cents per share from 27 cents per share. "The increase is the eighth in as many years and reflects the board's continued confidence in the company's long-term prospects," Sells said. "Although the first quarter is not a statistically significant one," Sells continued, "we believe that we have established a direction that will continue through the coming, more important quarters."
 WOOLWORTH CORPORATION
 Consolidated Statement of Income
 (in millions except per-share amounts -- unaudited)
 13 weeks ended 4/25/92 4/27/91
 REVENUES $2,096 $2,127
 COSTS AND EXPENSES
 Costs of sales 1,393 1,421
 Selling, general and administrative
 expenses 594 605
 Depreciation and amortization 60 62

 Interest expense 22 18
 2,069 2,106
 INCOME BEFORE INCOME TAXES AND CUMULATIVE
 EFFECT OF ACCOUNTING CHANGE 27 21
 Income taxes 10 8
 INCOME BEFORE CUMULATIVE EFFECT
 OF ACCOUNTING CHANGE 17 13
 Cumulative effect of change in method
 of accounting for postretirement
 benefits other than pensions -- (113)
 NET INCOME (LOSS) $ 17 $ (100)
 AMOUNTS PER COMMON SHARE
 Net income before cumulative
 effect of accounting change $ .13 $ .10
 Cumulative effect per share of
 change in method of accounting
 for postretirement benefits other
 than pensions (.87) --
 Net income (loss) $ .13 $ (.77)
 Dividends declared $ .28 $ .27
 Wtd. avg. no. of common shares
 outstanding 130.4 129.7
 WOOLWORTH CORPORATION
 Consolidated Condensed Balance Sheet
 (in millions -- unaudited)
 4/25/92 4/27/91(A)
 ASSETS:
 CURRENT ASSETS
 Cash, and cash equivalents
 at cost of $13 and $9 $ 97 $ 92
 Merchandise inventories 2,626 2,615
 Other current assets 369 177
 3,092 2,884
 OWNED AND LEASED PROPERTY AND
 EQUIPMENT, net 1,579 1,615
 DEFERRED CHARGES AND OTHER ASSETS 385 312
 $5,056 $4,811
 LIABILITIES AND SHAREHOLDERS' EQUITY:
 CURRENT LIABILITIES
 Short-term borrowings $1,048 $1,054
 Accounts payable & accrued
 liabilities 1,056 907
 Current portion of long-term debt and
 obligations under capital leases 36 24
 TOTAL 2,140 1,985
 LONG-TERM DEBT AND OBLIGATIONS UNDER
 CAPITAL LEASES 413 259
 DEFERRED TAXES AND OTHER LIABILITIES
 555 421
 SHAREHOLDERS' EQUITY:
 Preferred stock 1 1
 Common stock and paid-in capital 252 244
 Retained earnings 1,603 1,794
 Foreign currency
 translation adjustment 100 120
 TOTAL 1,956 2,159
 Less treasury stock, at cost (8) (13)
 Total shareholders' equity 1,948 2,146
 $5,056 $4,811
 (A) Certain amounts have been restated to reflect the change in method of accounting for postretirement benefits other than pensions.
 -0- 5/6/92
 /CONTACT: Roy L. Garofalo of Woolworth, 212-553-2532/
 (Z) CO: Woolworth Corporation ST: New York IN: REA SU: ERN


SH -- NY015 -- 6959 05/06/92 09:44 EDT
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Date:May 6, 1992
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