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TROY, Mich. - Kmart Holding Corporation announced today that it expects a significant profit for the first two months of its fiscal fourth quarter, November and December 2003, citing strong inventory management and the reduction of unprofitable promotions. The forecast sent share prices up more than 25 percent, according to Reuters.
Income before interest and income taxes for November and December is expected to be in excess of $350 million, not including gains on real estate transactions of approximately $75 million. After interest expense and income taxes, Kmart is expected to generate net income of more than $200 million for the first two months of its fourth quarter, not including gains on real estate transactions of approximately $50 million after taxes. Including gains on real estate transactions, income before interest and income taxes is expected to be in excess of $425 million and net income is expected to be in excess of $250 million.
However, Kmart said same-store sales for the first two months of its fiscal fourth quarter declined by 13.5 percent from the prior year. The company's total sales for the first two months of the fourth quarter of fiscal 2003 were approximately $5.1 billion compared to $6.9 billion in fiscal 2002. The drop in total sales came from the decrease in same-store sales, as well as the closure of 316 stores during the first quarter of fiscal 2003, Kmart said.
Kmart said it intends to release its financial results for fiscal year 2003 on March 18, 2004. The company will hold its 2004 Annual Meeting on or about May 25, 2004.