WOOLWORTH NET DOWN IN 1991 THIRD QUARTER
WOOLWORTH NET DOWN IN 1991 THIRD QUARTER NEW YORK, Nov. 6 /PRNewswire/ -- Net income of Woolworth Corporation
(NYSE: Z) declined 49 percent to $41 million, or 31 cents per share, in the third quarter ended Oct. 26, 1991, from $80 million, or 62 cents per share, in the corresponding year-earlier quarter, Harold E. Sells, chairman and chief executive officer, reported today.
For the 39 weeks ended Oct. 26, 1991, net income fell 55 percent to $75 million, or 57 cents per share, from $168 million, or $1.30 per share, in the comparable 1990 period. Revenues Revenues for the 13 weeks ended Oct. 26, 1991, declined 1.9 percent to $2,423 million from $2,469 million in the comparable 1990 period. Specialty store revenues increased 7.6 percent while general merchandise revenues decreased 9.9 percent. Domestic revenues rose 2.6 percent but foreign revenues, expressed in U.S. dollars, declined 7.5 percent. For the 39 weeks ended Oct. 26, 1991, revenues increased to $6,778 million from $6,725 million in the corresponding period of 1990. Specialty store revenues rose 7.6 percent and general merchandise revenues declined 4.9 percent. Domestic revenues increased 2.8 percent but foreign revenues, expressed in U.S. dollars, decreased 1.8 percent. Sells stated, "Revenues for the thirteen and thirty-nine weeks ended Oct. 26, 1991, were considerably below plan for all operations. The sluggish economy in North America continued to hurt operations, especially in Canada, where same-condition sales for the first three quarters of 1991 were down 13 percent.
The company's performance in
Canada also continued to be negatively affected by the goods and service tax imposed in that country on January 1."
Sells also noted that same-condition sales for the German operation were down 8.3 percent for the 1991 third quarter. He attributed this to a return to more normal consumer spending after exceptionally strong sales activity during the 1990 third quarter, when same-condition sales increased by more than 30 percent due to the German re-unification. Operating Results Operating profit (income before corporate expense, interest, and income taxes) was $100 million for the 13 weeks ended Oct. 26, 1991, a decline of 41 percent from $169 million in the comparable 1990 period. Specialty store operating profit decreased to $81 million from $100 million and general merchandise operating profit decreased to $19 million from $69 million. Domestic operating profit for the thirteen-week period decreased to $76 million from $99 million in the comparable year-earlier period and foreign operating profit declined to $24 million from $70 million. For the 39 weeks ended Oct. 26, 1991, operating profit declined 44 percent to $216 million from $383 million in the comparable period of 1990. Specialty store operating profit fell to $146 million from $220 million and general merchandise operating profit fell to $70 million from $163 million. Domestic operating profit for the 39-week period declined to $168 million from $240 million and foreign operating profit declined to $48 million from $143 million. Changes in foreign currency translation rates did not have a significant effect on year-to-year revenue or operating-profit comparisons for the 13- or the 39-week periods ended Oct. 26, 1991. Financial Position Short-term borrowings increased to $1,434 million at Oct. 26, 1991, compared to $1,096 million at Oct. 27, 1990. The increased borrowings were largely due to lower-than-planned revenues and the company's continuing extensive store -- expansion and acquisition programs. Since the beginning of the third quarter the company acquired the previously licensed men's and boys' apparel departments and the remaining licensed drug departments in its Canadian Woolco stores; the Lamston general merchandise stores in the New York City area; and The San Francisco Music Box Company, a leading national specialty retailer of musical giftware. On Oct. 11, 1991, the company filed a shelf registration statement with the Securities and Exchange Commission to allow for offerings, from time to time, of up to $400 million of debt securities. The amounts, prices, and terms of the debt securities will be determined by the company at the time of offerings. As of Oct. 26, 1991, the company operated a total of 9,167 stores, consisting of 7,427 specialty stores and 1,740 general merchandise stores. This is a 6.7 percent increase from the 8,594 stores operated as of Oct. 27, 1990. Outlook Sells stated, "We continue to be optimistic about Woolworth's underlying growth characteristics. Present economic conditions have afforded an opportunity for us to improve our long-term position through store openings and acquisitions. "While the expected year-end pick-up in consumer spending has not yet begun, we are confident that year-to- year comparisons will improve over the next several months," he added. WOOLWORTH CORPORATION Consolidated Statement of Income (Unaudited, in millions except per share amounts) Periods ended: Thirteen weeks Thirty-nine weeks 10/26/91 10/27/90 10/26/91 10/27/90 REVENUES $2,423 $2,469 $6,778 $6,725 COSTS AND EXPENSES Costs of sales 1,625 1,624 4,555 4,412 SG&A expenses 641 633 1,848 1,801 Depreciation and amortization 65 58 189 168 Interest expense 27 26 67 76 Total 2,358 2,341 6,659 6,457 Income bef. inc. taxes 65 128 119 268 Income taxes 24 48 44 100 Net income $ 41 $ 80 $ 75 $ 168 Amounts per common share Net income $ .31 $ .62 $ .57 $ 1.30 Dividends declared $ .27 $ .26 $ .81 $ .78 Wtd. avg. no. of common shares outstanding 130.1 129.5 130.1 129.5 Consolidated Condensed Balance Sheet (Unaudited, in millions) 10/26/91 10/27/90 ASSETS Current Assets Cash, and cash equivalents at cost of $4 and $10 $ 68 $ 82 Merchandise inventories 3,064 2,804 Other current assets 196 183 Total 3,328 3,069 Owned and leased properties, net 1,674 1,575 Deferred charges and other assets 290 239 Total $5,292 $4,883 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Short-term debt $1,434 $1,096 Accounts payable & accrued liabs. 1,033 1,041 Current portion of long-term debt & obligations under capital leases 29 22 Total 2,496 2,159 Long-term debt 176 215 Long-term obligations under capital leases 66 73 Deferred taxes & other liabilities 256 241 Shareholders' Equity: Preferred stock 1 1 Common stock and paid-in capital 249 237 Retained earnings 1,899 1,814 Foreign currency translation adjust. 151 155 Total 2,300 2,207 Less treasury stock, at cost (2) (12) Total shareholders' equity 2,298 2,195 Total $5,292 $4,883 -0- 11/6/91 R /CONTACT: Frances E. Trachter of Woolworth, 212-553-2394/ (Z) CO: Woolworth Corporation ST: New York IN: REA SU: ERN JP-TS -- NY012R -- 1710 11/06/91 12:28 EST
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|Date:||Nov 6, 1991|
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