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WOOLWORTH REPORTS LOSS IN 1993 THIRD QUARTER BECAUSE OF SPECIAL CHARGE

 NEW YORK, Nov. 10 /PRNewswire/ -- Woolworth Corporation (NYSE: Z) today reported a net loss for the thirteen-week period ended October 30, 1993, of $452 million, or $3.43 per share. The loss for the period includes an after-tax charge of approximately $480 million, or $3.66 per share, as a result of a store-repositioning program announced on October 13. In the corresponding year-earlier period, net income was $65 million, or 50 cents per share.
 The repositioning program will result in the closing or redeployment of about 970 under-performing general merchandise and specialty stores in the United States and Canada.
 For the thirty-nine weeks ended October 30, 1993, the company reported a net loss of $449 million, or $3.41 per share, which includes the third quarter repositioning charge. Net income was $115 million, or 88 cents per share, in the comparable 1992 period.
 William K. Lavin, chairman and chief executive officer, said, "The repositioning program is consistent with a long-standing strategic priority to restructure, reformat and revitalize businesses which can meet the company's financial objectives within a reasonable time span--and to redeploy assets away from those businesses which cannot. We believe it will enable us to better allocate assets to more-profitable formats and accelerate the implementation of our strategic direction for Woolworth general merchandise and Kinney shoe stores. We expect that this program, as well as other recent steps, such as the consolidation of various operations, logistics improvements, and the centralization of various support functions, will move the company closer to its goal of being a low cost, customer-driven organization."
 REVENUES
 Revenues for the thirteen weeks ended October 30, 1993, declined 4.6 percent to $2,387 million from $2,501 million in the comparable 1992 period. Specialty store revenues rose 1.8 percent while general merchandise revenues declined 10 percent. Domestic revenues declined 0.5 percent and foreign revenues, expressed in U.S. dollars, declined 10 percent. If foreign revenues for the thirteen weeks ended October 30, 1993, had been translated into U.S. dollars at year-earlier foreign exchange rates, foreign revenues would have increased 0.2 percent and total revenues would have declined 0.2 percent.
 For the thirty-nine weeks ended October 30, 1993, revenues declined to $6,810 million from $6,827 million in the corresponding period of 1992. Specialty store revenues rose 5.1 percent while general merchandise revenues declined 4.7 percent. Domestic revenues rose 2.1 percent and foreign revenues, expressed in U.S. dollars, declined 3.4 percent. If foreign revenues had been translated at year-earlier foreign exchange rates, foreign revenues would have increased 3.0 percent and total revenues would have increased 2.5 percent.
 OPERATING RESULTS
 Operating (loss) profit (before corporate expense, interest, and income taxes), and pretax repositioning charges included in those operating results, are summarized below.
 Thirteen weeks Thirty-nine weeks
 ended ended
 Oct. 30, Oct. 24, Oct. 30, Oct. 24, Repositioning
 1993 1992 1993 1992 Charge
 (in millions)
 Specialty $(187) $116 $(116) $229 $(260)
 General
 merchandise (504) 25 (516) 59 (515)
 Total $(691) $141 $(632) $288 $(775)
 Domestic $(600) $113 $(524) $228 $(666)
 Foreign (91) 28 (108) 60 (109)
 Total $(691) $141 $(632) $288 $(775)
 Changes in foreign currency translation rates did not have a significant effect on year-to-year total operating-profit comparisons for the thirteen- or the thirty-nine-week periods ended October 30, 1993.
 As of October 30, 1993, the company operated a total of 8,570 stores (consisting of 7,442 specialty stores and 1,128 general merchandise stores), compared to 8,892 stores operated as of October 24, 1992. During this period, the company opened 963 stores and closed 1,285, including 970 stores included in the repositioning program.
 FINANCIAL POSITION
 Merchandise inventories at October 30, 1993, were $207 million lower than the prior-year level, reflecting the repositioning program. Shareholders' equity at October 30, 1993, declined $571 million from the level at October 24, 1992, primarily due to the $480 million charge for the repositioning program, and a $156 million charge to foreign currency translation adjustment due to the decline in value of the Canadian dollar and the German mark.
 (unaudited)
 WOOLWORTH CORPORATION
 CONSOLIDATED STATEMENT OF INCOME
 (in millions, except per-share amounts)
 Thirteen weeks Thirty-nine weeks
 ended ended
 Oct. 30, Oct. 24, Oct. 30, Oct. 24,
 1993 1992 1993 1992
 REVENUES $2,387 $2,501 $6,810 $6,827
 COSTS AND EXPENSES
 Costs of sales 1,619 1,644 4,647 4,521
 Selling, general and
 administrative expenses
 Total 633 664 1,860 1,864
 Depreciation and
 amortization 63 65 192 189
 Interest expense 24 25 59 71
 Repositioning charge 775 775
 Total 3,114 2,398 7,533 6,645
 (LOSS) INCOME BEFORE INCOME
 TAXES (727) 103 (723) 182
 Income taxes (275) 38 (274) 67
 NET (LOSS) INCOME $ (452) $ 65 $ (449) $ 115
 AMOUNTS PER COMMON SHARE
 Net (loss) income
 $(3.43) $ .50 $(3.41) $ .88
 Dividends declared
 $ .29 $ .28 $ .87 $ .84
 Weighted-average number
 of common shares out-
 standing 131.6 130.7 131.6 130.7
 (unaudited)
 WOOLWORTH CORPORATION
 CONSOLIDATED CONDENSED BALANCE SHEET
 (in millions)
 Oct. 30, Oct. 24,
 1993 1992
 ASSETS
 CURRENT ASSETS
 Cash, and cash equivalents
 at cost of $19 and $1 $ 79 $ 118
 Merchandise inventories 2,817 3,024
 Other current assets 590 366
 Total 3,486 3,508
 OWNED AND LEASED PROPERTY AND EQUIPMENT, net
 1,599 1,657
 DEFERRED CHARGES AND OTHER ASSETS
 560 429
 $5,645 $5,594
 LIABILITIES AND SHAREHOLDERS' EQUITY
 CURRENT LIABILITIES
 Short-term debt $1,517 $1,402
 Accounts payable and
 accrued liabilities 1,397 1,154
 Current portion of long-term
 debt and obligations under
 capital leases 30 56
 Total 2,944 2,612
 LONG-TERM DEBT AND OBLIGATIONS UNDER
 CAPITAL LEASES 346 361
 DEFERRED TAXES AND OTHER
 LIABILITIES 887 582
 SHAREHOLDERS' EQUITY:
 Preferred stock 1 1
 Common stock and paid-in capital
 Total 277 258
 Retained earning 1,191 1,627
 Foreign currency translation
 adjustment (1) 155
 Total 1,468 2,041
 Less treasury stock, at cost - (2)
 Total shareholders' equity
 1,468 2,039
 $5,645 $5,594
 -0- 11/10/93
 /CONTACT: Frances E. Trachter of Woolworth, 212-553-2394/
 (Z)


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

LG -- NY023 -- 2615 11/10/93 09:14 EST
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Date:Nov 10, 1993
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