Kmart shares increased more than 17% on last year, and it went from a loss of $5m or 6 cents a share to a profit of $155m or $1.54 a share for the three months to July 28.
However, total sales fell 15% from $5.65bn to $4.79bn, and same store sales, from stores open at least a year, fell 14.9%. This was attributed to cuts in promotional events and newspaper advertising as well as the weather.
These are the first year-on-year comparison results since Kmart’s Chapter 11 programme whereby it restructured from 2,100 to 1,500 stores to recover its position following a difficult period. The share price has increased more than four-fold since this period