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WOOLWORTH REPORTS SECOND QUARTER RESULTS

 NEW YORK, Aug. 11 /PRNewswire/ -- Net income of Woolworth Corporation (NYSE: Z) was $2 million, or one cent per share, in the second quarter ended July 31, 1993, compared to net income of $33 million, or 25 cents per share, in the corresponding year-earlier quarter, it was reported today by William K. Lavin, chairman of the board and chief executive officer.
 For the twenty-six weeks ended July 31, 1993, net income was $3 million, or two cents per share, compared to net income of $50 million, or 38 cents per share, in the comparable 1992 period.
 REVENUES
 Revenues for the thirteen weeks ended July 31, 1993, increased 2.6 percent to $2,288 million compared to $2,230 million in the corresponding 1992 period. Specialty store revenues rose 7.4 percent while general merchandise revenues declined 1.2 percent. Domestic revenues rose 4.8 percent and foreign revenues, expressed in U.S. dollars, were essentially flat. If foreign revenues had been translated into U.S. dollars at year-earlier foreign exchange rates, foreign revenues would have increased 8.6 percent and total revenues 6.5 percent.
 For the twenty-six weeks ended July 31, 1993, revenues rose 2.2 percent to $4,423 million from $4,326 million in the corresponding period of 1992. Specialty store revenues rose 7.0 percent but general merchandise revenues declined 1.6 percent. Domestic revenues rose 3.6 percent and foreign revenues, expressed in U.S. dollars, were essentially flat. If foreign revenues had been translated into U.S. dollars at year-earlier foreign exchange rates, foreign revenues would have increased 7.0 percent and total revenues 5.0 percent.
 OPERATING RESULTS
 Operating profit (income before corporate expense, interest and income taxes) for the thirteen weeks ended July 31, 1993, was $33 million compared to $88 million in the comparable 1992 period. Specialty store operating profit decreased to $37 million from $67 million. General merchandise operations recorded an operating loss of $4 million compared to operating profit of $21 million. Domestic operating profit declined to $32 million from $58 million and foreign operating profit declined to $1 million from $30 million.
 For the twenty-six weeks ended July 31, 1993, operating profit was $59 million compared to $147 million in the comparable period of 1992. Specialty store operating profit decreased to $71 million from $113 million. General merchandise operations recorded an operating loss of $12 million compared to operating profit of $34 million. Domestic operating profit declined to $76 million from $115 million and foreign operations recorded an operating loss of $17 million compared to operating profit of $32 million.
 Changes in foreign currency translation rates did not have a material effect on operating-result comparisons for the thirteen or twenty-six weeks ended July 31, 1993.
 FINANCIAL POSITION AND OUTLOOK
 As of July 31, 1993, the company operated a total of 9,240 stores, consisting of 7,580 specialty stores and 1,660 general merchandise stores. This represents an increase of 7.1 percent from the 8,626 stores operated as of July 25, 1992. The increase in stores, coupled with lower-than-planned revenues, resulted in higher inventory and debt levels. Shareholders' equity declined $46 million to $1,952 million at July 31, 1993, from $1,998 million at July 25, 1992. The decline was attributable to a $152 million charge to foreign currency translation adjustment due to the weakening of the Canadian dollar and German mark.
 Commenting on the outlook for the year, Mr. Lavin said, "Weak economic conditions and low consumer confidence in the major markets in which we do business continue to depress sales and gross margins, making it unlikely that there will be a year-to-year increase in earnings."
 (unaudited)
 WOOLWORTH CORPORATION
 CONSOLIDATED STATEMENT OF INCOME
 (in millions except per-share amounts)
 Thirteen weeks Twenty-six weeks
 ended ended
 July 31, July 25, July 31, July 25,
 1993 1992 1993 1992
 REVENUES $2,288 $2,230 $4,423 $4,326
 COSTS AND EXPENSES
 Costs of sales 1,582 1,484 3,028 2,877
 Selling, general and
 administrative
 expenses 618 606 1,227 1,200
 Depreciation and
 amortization 66 64 129 124
 Interest expense 19 24 35 46
 Total 2,285 2,178 4,419 4,247
 INCOME BEFORE
 INCOME TAXES 3 52 4 79
 Income taxes 1 19 1 29
 NET INCOME $ 2 $ 33 $ 3 $ 50
 AMOUNTS PER COMMON SHARE
 Net income $ .01 $ .25 $ .02 $ .38
 Dividends declared $ .29 $ .28 $ .58 $ .56
 Weighted-average number
 of common shares out-
 standing 131.5 130.5 131.5 130.5 (unaudited)
 WOOLWORTH CORPORATION
 CONSOLIDATED CONDENSED BALANCE SHEET
 (in millions)
 July 31, July 25,
 1993 1992
 ASSETS
 CURRENT ASSETS
 Cash, and cash equivalents at cost
 of $6 and $73 $ 66 $ 120
 Merchandise inventories 2,882 2,690
 Other current assets 328 363
 3,276 3,173
 OWNED AND LEASED PROPERTY AND EQUIPMENT, net
 1,618 1,617
 DEFERRED CHARGES AND OTHER ASSETS 451 382
 $5,345 $5,172
 LIABILITIES AND SHAREHOLDERS' EQUITY
 CURRENT LIABILITIES
 Short-term debt $1,480 $1,100
 Accounts payable and accrued liabilities
 946 1,056
 Current portion of long-term debt and
 obligations under capital leases
 31 36
 2,457 2,192
 LONG-TERM DEBT AND OBLIGATIONS UNDER
 CAPITAL LEASES 352 414
 DEFERRED TAXES AND OTHER LIABILITIES
 584 568
 SHAREHOLDERS' EQUITY:
 Preferred stock 1 1
 Common stock and paid-in capital
 276 255
 Retained earnings 1,682 1,599
 Foreign currency translation adjustment
 (7) 145
 1,952 2,000
 Less treasury stock, at cost (2)
 Total shareholders' equity
 1,952 1,998
 $5,345 $5,172
 -0- 8/11/93
 /CONTACT: Frances E. Trachter, 212-553-2394, of Woolworth/
 (Z)


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

LG -- NY020 -- 1528 08/11/93 09:07 EDT
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Date:Aug 11, 1993
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