Kmart Restates 2001 Financial Data
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Kmart Corp. filed its official restated earnings for the first three quarters of 2001, reflecting changes in the way it reports vendor discounts.
The first-quarter net loss is $233 million, restated from a loss of $25 million.
For the second quarter, Kmart reported a loss of $377 million instead of the previously reported loss of $95 million; and its restated loss for the third quarter was $235 million instead of $224 million.
Kmart has said that because of its bankruptcy filing and uncertainty of its future relationships with vendors, it will record the discounts--called rebates and allowances--only after it has a formal agreement.
Previously, Kmart recorded the discounts in anticipation of receiving them.
Kmart filed for bankruptcy Jan. 22, following disappointing holiday sales and a stock dive.The restated earnings don’t change the retailer’s fiscal year 2001 earnings.
Kmart posted a loss of $2.42 billion, or $4.89 per share, for 2001. The company is to release its 2002 first-quarter earnings Friday.
Kmart closed at 97 cents, down 4 cents, on the NYSE.
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