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Kmart beats 4Q estimates
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March 3, 1999: 9:17 a.m. ET
Retailer's profit soars as key brands, Big Kmart format see success
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NEW YORK (CNNfn) - Kmart Corp. posted stronger-than-expected fourth-quarter earnings Tuesday, thanks in part to the success of its new "Big Kmart" format.
Including charges related to two voluntary early retirement programs, the company's profit climbed to $353 million, or 65 cents per diluted share, from $186 million, or 50 cents per diluted share, a year ago. Sales soared to $10.4 billion from $9.759 billion for the quarter, ended Jan. 27.
That figure outpaced analysts' expectations, which had put fourth quarter earnings at 61 cents per share, according to tracking firm First Call.
For the year, including the charges, Kmart's earnings totaled $518 million, or $1.03 per share, on revenue of $33.67 billion. That was up from $249 million, or 68 cents per share, on revenue of $32.2 billion the year before.
The Troy, Mich.-based retailer credited the successful performance of its Big Kmart stores for improved profits and said it plans to convert an additional 586 stores into the Big Kmart format in 1999.
Strong sales in key brands, such as Martha Stewart Everyday home fashions, Sesame Street children's clothing and Route 66 apparel, also bolstered the retailer's bottom line.
The company's same-store sales grew 4.8 percent for the year.
Shares of Kmart (KM) climbed 1/4 to 17-11/16 Tuesday. 
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Kmart
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