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WOOLWORTH REPORTS NET INCOME FOR FOURTH QUARTER AND YEAR

 NEW YORK, March 3 /PRNewswire/ -- Woolworth Corporation (NYSE: Z) today reported net income for the fourteen-week period ended January 30, 1993, of $165 million, or $1.26 per share, compared to a net loss of $128 million, or 98 cents per share, for the thirteen weeks ended January 25, 1992. The loss for the period ended January 25, 1992, reflected an after-tax restructuring charge of $250 million, or $1.92 per share, as a result of an accelerated store redeployment program.
 For the fifty-three weeks ended January 30, 1993, the company reported net income of $280 million, or $2.14 per share, compared to a net loss of $166 million, or $1.28 per share, for the fifty-two weeks ended January 25, 1992. Results for the period ended January 25, 1992, in addition to the restructuring charge, included an after-tax charge of $113 million, or 87 cents per share, reflecting the cumulative effect of a change in accounting for retiree benefits.
 Prior-year amounts include the results of some 900 United States stores which have been or are scheduled to be closed as part of the accelerated store redeployment program announced in January 1992. While total revenues for 1992 were negatively impacted, operating profit comparisons were positively impacted by the closing of those poor- performing stores.
 Revenues
 Revenues for the fourteen weeks ended January 30, 1993, were $3,135 million compared to $3,136 million in the year-earlier period. Specialty store revenues increased 1.5 percent, while general merchandise revenues decreased 1.3 percent.
 Domestic revenues increased 1.2 percent and foreign revenues, expressed in U.S. dollars, decreased 1.5 percent. If foreign revenues had been translated into U.S. dollars at year-earlier foreign exchange rates, foreign revenues would have increased 3.5 percent and total revenues 2.2 percent.
 For the fifty-three weeks ended January 30, 1993, revenues increased to $9,962 million from $9,914 million in the prior year. Specialty store revenues increased 1.4 percent, while general merchandise revenues decreased less than one percent.
 Domestic revenues declined less than one percent, while foreign revenues, expressed in U.S. dollars, increased 2.0 percent. If foreign revenues had been translated into U.S. dollars at year-earlier foreign exchange rates, foreign revenues would have increased 3.7 percent and total revenues 1.2 percent.
 Fourth Quarter Operating Results
 Operating profit (income before corporate expense, interest and income taxes) for the fourteen weeks ended January 30, 1993, was $286 million compared to an operating loss of $163 million for the thirteen weeks ended January 25, 1992. The $163 million operating loss included a $390 million restructuring charge for the closing of 900 poor-performing domestic stores, of which $313 million was for specialty operations and $77 million was for general merchandise operations.
 Domestic operating profit rose to $212 million from operating profit, before the restructuring charge, of $130 million in the prior- year period. Foreign operating profit declined to $74 million from $97 million. Operating results in Europe, particularly Germany, were weak due to the recession on that continent.
 Specialty operating profit rose to $189 million for the fourteen- week period from operating profit, before the restructuring charge, of $162 million in the comparable prior-year period. General merchandise operating profit, which included non-recurring items discussed later, rose to $97 million, from operating profit, before the restructuring charge, of $65 million in the 1991 fourth quarter.
 1992 Operating Results
 For the fifty-three weeks ended January 30, 1993, operating profit rose to $574 million from operating profit, before the restructuring charge, of $443 million in the prior-year period.
 Domestic operating profit rose to $441 million from operating profit, before the restructuring charge, of $298 million in the prior year. Included in domestic operating profit were net LIFO credits of $36 million in 1992 and $25 million in 1991. Foreign operating profit for 1992 declined to $133 million from $145 million in the prior year.
 A comparison of year-to-year operating profit before the $390 million domestic restructuring charge taken in 1991 follows:
 Fifty-three Fifty-two
 weeks ended weeks ended
 (in millions) Jan. 30, Jan. 25,
 1993 1992
 Specialty
 United States $ 380 $ 269
 Canada 31 31
 Other foreign operations 7 12
 418 312
 General Merchandise
 United States 61 29
 Canada 16 (22)
 Germany 71 121
 Mexico 8 3
 156 131
 Total operating profit before
 restructuring charge $ 574 $ 443
 U.S. specialty operations were positively impacted by the strong performance of athletic footwear and apparel. Profit improvements in U.S. general merchandise operations were largely due to real estate gains and improvements in The Rx Place results.
 Helped by improved gross margins, Canadian general merchandise operations recovered from a depressed level in 1991. However, the economy remains weak, with unemployment high and consumer spending under pressure. We believe that we are in an excellent position to benefit from any improvement in the economy in 1993.
 The recession in Germany resulted in disappointing sales through most of 1992. Heavy promotions put severe pressure on gross margins but kept inventories in line.
 Changes in foreign currency translation rates did not have a significant effect on year-to-year operating-profit comparisons for the fourteen- or fifty-three-week periods ended January 30, 1993.
 Financial Position
 Merchandise inventories at January 30, 1993, increased 5.4 percent from prior-year levels due to the increased number of stores and expected 1993 sales increases. Total debt on the balance sheet at January 31, 1993, including short-term debt of $164 million, increased $11 million from that reported at January 25, 1992.
 WOOLWORTH CORPORATION
 CONSOLIDATED STATEMENT OF INCOME
 (in millions, except per-share amounts)
 Fourteen Thirteen Fifty-three Fifty-two
 weeks ended weeks ended weeks ended weeks ended
 Jan. 30, Jan. 25, Jan. 30, Jan. 25,
 1993(A) 1992(A) 1993 1992
 REVENUES
 $ 3,135 $ 3,136 $ 9,962 $ 9,914
 COSTS AND EXPENSES
 Costs of sales
 2,162 2,129 6,683 6,684
 Selling, general and
 administrative expenses
 637 727 2,501 2,575
 Depreciation and amortization
 65 72 254 261
 Interest expense
 16 20 87 87
 Restructuring charge
 390 __ 390
 2,880 3,338 9,525 9,997
 INCOME (LOSS) BEFORE INCOME
 TAXES AND CUMULATIVE EFFECT
 OF ACCOUNTING CHANGE
 255 (202) 437 (83)
 Income taxes
 90 (74) 157 (30)
 INCOME (LOSS) BEFORE
 CUMULATIVE EFFECT OF
 ACCOUNTING CHANGE
 165 (128) 280 (53)
 Cumulative effect on prior
 years of change in accounting
 for retiree benefits
 __ __ __ (113)
 NET INCOME (LOSS)
 $ 165 $ (128) $ 280 $ (166)
 AMOUNTS PER COMMON SHARE
 Income (loss) before cumulative
 effect of accounting
 change
 $ 1.26 $ (0.98) $ 2.14 $ (0.41)
 Cumulative effect on prior
 years of change in accounting
 for retiree benefits
 __ __ __ (0.87)
 Net income (loss)
 $ 1.26 $ (0.98) $ 2.14 $ (1.28)
 Dividends declared
 $ .28 $ .27 $ 1.12 $ 1.08
 Weighted-average number of
 common shares outstanding
 130.8 130.2 130.8 130.2
 (A) Unaudited
 NOTE: SEE COMMENTS ON THE RESTRUCTURING CHARGE AND ACCOUNTING CHANGE ABOVE.
 WOOLWORTH CORPORATION
 CONSOLIDATED CONDENSED BALANCE SHEET
 (in millions)
 January 30, January 25,
 1993 1992
 ASSETS
 CURRENT ASSETS
 Cash, and cash equivalents
 at cost of $3 and $4
 $ 49 $ 69
 Merchandise inventories
 2,269 2,152
 Other current assets
 336 369
 2,654 2,590
 PROPERTY and EQUIPMENT, net
 1,626 1,642
 DEFERRED CHARGES AND OTHER ASSETS
 412 386
 $4,692 $4,618
 LIABILITIES AND SHAREHOLDERS' EQUITY
 CURRENT LIABILITIES
 Short-term borrowings $ 164 $ -
 Accounts payable and accrued liabilities
 1,473 1,471
 Current portion of long-term debt and
 obligations under capital leases
 21 121
 1,658 1,592
 LONG-TERM DEBT AND OBLIGATIONS
 UNDER CAPITAL LEASES
 372 425
 DEFERRED TAXES AND OTHER LIABILITIES
 603 570
 SHAREHOLDERS' EQUITY:
 Preferred stock 1 1
 Common stock and paid-in capital
 267 251
 Retained earnings 1,755 1,622
 Foreign currency translation adjustment
 39 164
 2,062 2,038
 Less treasury stock, at cost
 (3) (7)
 Total shareholders' equity
 2,059 2,031
 $4,692 $4,618
 -0- 3/3/93
 /CONTACT: Frances E. Trachter of Woolworth, 212-553-2394/
 (Z)


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

SH -- NY017 -- 2332 03/03/93 09:34 EST
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Date:Mar 3, 1993
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