US discounter Kmart has moved back into profit for the first time since coming out of receivership last May, but has seen sales fall in the wake of recent store closures.
Kmart announced a pre-tax profit of $505m for the 9-months to January 28, compared to a loss of $1.27bn for the same period the previous year.
However, sales fell by 23% from $22.1bn to $17bn for the same period as a result of the closure of 316 stores as well as a reduction in promotional and advertising as the company pursued a more prudent operating policy.
Kmart’s UK-born boss Julian Day - who has led to company out of Chapter 11 bankruptcy - said: “By giving careful thought to the processes of sourcing, logistics, pricing, inventory management and in-store presentation, we have significantly improved the profitability of our market basket.”
Kmart announced a pre-tax profit of $505m for the 9-months to January 28, compared to a loss of $1.27bn for the same period the previous year.
However, sales fell by 23% from $22.1bn to $17bn for the same period as a result of the closure of 316 stores as well as a reduction in promotional and advertising as the company pursued a more prudent operating policy.
Kmart’s UK-born boss Julian Day - who has led to company out of Chapter 11 bankruptcy - said: “By giving careful thought to the processes of sourcing, logistics, pricing, inventory management and in-store presentation, we have significantly improved the profitability of our market basket.”
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