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WOOLWORTH REPORTS 1993 FIRST QUARTER RESULTS

 NEW YORK, May 12 /PRNewswire/ -- Net income of Woolworth Corporation (NYSE: Z) was $1 million, or one cent per share, in the first quarter ended May 1, 1993, compared to net income of $17 million, or 13 cents per share, in the prior-year period, it was reported today by Harold E. Sells, chairman and chief executive officer.
 Mr. Sells said, "Weak economic conditions and low consumer confidence in the principal markets in which we do business depressed sales. This, coupled with increased markdown activity, lowered first quarter earnings." Mr. Sells emphasized that first quarter results historically represent a small portion of annual earnings.
 REVENUES
 Revenues for the thirteen weeks ended May 1, 1993, increased 1.9 percent to $2,135 million from $2,096 million in the comparable 1992 period. Specialty store revenues rose 6.7 percent and general merchandise revenues declined 2.0 percent. Domestic revenues increased 2.3 percent and foreign revenues, expressed in U.S. dollars, increased 1.2 percent. If foreign revenues had been translated into U.S. dollars at year-earlier foreign exchange rates, they would have increased 5.2 percent, and total revenues would have increased 3.5 percent.
 OPERATING RESULTS
 Operating profit (income before corporate expense, interest and income taxes) for the thirteen weeks ended May 1, 1993, was $26 million compared to $59 million in the corresponding year-earlier period. Specialty store operating profit declined to $34 million from $46 million. General merchandise operations recorded an operating loss of $8 million compared to operating profit of $13 million in the prior-year period.
 Domestic operating profit declined to $44 million from $57 million, and foreign operations posted an operating loss of $18 million compared to operating profit of $2 million in the prior-year period. Changes in foreign currency translation rates did not have a material effect on operating-result comparisons.
 Due to substantially lower short-term interest rates, interest expense declined 27 percent from the prior-year period, despite higher borrowing levels.
 FINANCIAL POSITION
 Total debt increased $229 million which was used primarily to fund increased inventory levels needed to support the increased number of stores. As of May 1, 1993, the company operated a total of 9,120 stores, consisting of 7,467 specialty stores and 1,653 general merchandise stores. This represents an increase of 590 stores, or 6.9 percent, from the 8,530 operated as of April 25, 1992.
 RECENT DEVELOPMENTS AND OUTLOOK
 Mr. Sells said, "While first quarter results were disappointing, we believe that through our store redeployment and expansion programs, we are well positioned to benefit from a future economic upturn." Expressing confidence in the company's prospects, on April 14, 1993, the board of directors declared an increase in the quarterly cash dividend on common stock, to 29 cents per share from 28 cents per share.
 (unaudited)
 WOOLWORTH CORPORATION
 CONSOLIDATED STATEMENT OF INCOME
 (in millions except per-share amounts)
 Thirteen weeks ended
 May 1, April 25,
 1993 1992
 REVENUES $2,135 $2,096
 COSTS AND EXPENSES
 Costs of sales 1,446 1,393
 Selling, general and administrative
 expenses 609 594
 Depreciation and amortization 63 60
 Interest expense 16 22
 2,134 2,069
 INCOME BEFORE INCOME TAXES 1 27
 Income taxes - 10
 NET INCOME $ 1 $ 17
 AMOUNTS PER COMMON SHARE
 Net income $ .01 $ .13
 Dividends declared $ .29 $ .28
 Weighted-average number of common
 shares outstanding 131.3 130.4
 (unaudited)
 WOOLWORTH CORPORATION
 CONSOLIDATED CONDENSED BALANCE SHEET
 (in millions)
 May 1, April 25,
 1993 1992
 ASSETS
 CURRENT ASSETS
 Cash, and cash equivalents
 at cost of $6 and $13 $ 73 $ 97
 Merchandise inventories 2,799 2,626
 Other current assets 358 369
 3,230 3,092
 OWNED AND LEASED PROPERTY AND
 EQUIPMENT, net 1,638 1,579
 DEFERRED CHARGES AND OTHER ASSETS 430 385
 $5,298 $5,056
 LIABILITIES AND SHAREHOLDERS' EQUITY
 CURRENT LIABILITIES
 Short-term debt $1,337 $1,048
 Accounts payable and accrued liabilities
 944 1,056
 Current portion of long-term debt and
 obligations under capital leases 32 36
 2,313 2,140
 LONG-TERM DEBT AND OBLIGATIONS UNDER
 CAPITAL LEASES 357 413
 DEFERRED TAXES AND OTHER LIABILITIES 599 555
 SHAREHOLDERS' EQUITY:
 Preferred stock 1 1
 Common stock and paid-in capital 267 252
 Retained earnings 1,718 1,603
 Foreign currency translation adjustment
 46 100
 2,032 1,956
 Less treasury stock, at cost (3) (8)
 Total shareholders' equity 2,029 1,948
 $5,298 $5,056
 -0- 5/12/93
 /CONTACT: Frances E. Trachter of Woolworth, 212-553-2394/
 (Z)


CO: Woolworth Corporation ST: New York IN: REA SU: ERN

PS -- NY019 -- 7385 05/12/93 08:54 EDT
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Publication:PR Newswire
Date:May 12, 1993
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