Kmart hits 30 with upbeat earnings report - K Mart Corp.'s 30th anniversary

Discount Store News, April 6, 1992 by Laura Liebeck

TROY, Mich. - Kmart celebrated its 30th year in discount retailing with an upbeat 1991 sales and earnings report, a birthday bash and a 2-for-1 stock split.

Kmart's board of directors approved the stock split and an increase of 4.5% in its quarterly common stock dividend March 24. At the time of the split, Kmart stock was trading a bit below its 52-week high of 54 at 53 7/8, up 3/8.

In addition to the stock split, which represent an increase in the annual rate to $1.84 from $1.76, the board approved a cash dividend of 85.25 cents per share on its Preferred Equity Redemption Cumulative Stock (PERCS).

Also March 24, Kmart chairman Joseph Antonini was inducted into the 1992 National Sales Hall of Fame at New York's Waldorf-Astoria Hotel. Former U.S. Secretary of Health, Education and Welfare Joseph Califano presented Antonini with his award, which recognized the Kmart chief executive as a leader in his industry.

These three events occurred on the heels of Kmart's up-beat sales and profits report for 1991 and headlines events surrounding the chain's 30th anniversary in discounting.

In fact, positive results from Kmart's five-year renovation, remodeling and relocation program, which Antonini spearheaded, helped push up retail sales 7.8% last year to $34.97 billion. Earnings for the company jumped 13.4% to $859 million, or $4.03 per share for 1991, ended Jan. 29.

The increase, largerly the result of hefty gains in the company's specialty store division, still included a 2.6% sale hike for the 2,375 discount department stores, to $25.55 billion.

Same store sales for the discount stores were 2.1% over the previous year.

Kmart's specialty stores division, which includes Builders Square, Walden Book Co., Pace Membership Clubs, OfficeMax, The Sports Authority, and Payless Drug Stores NW, posted sales of $9.03 billion in 1991, up 25.8% from a year ago. Some store sales for the division were 9%.

During the fourth quarter, net income jumped 19.2% to $479 million on sales of $10.56 billion, up 8.3%.

Antonini proudly announced the company's earnings report to a gathering of about 100 Kmart executives and key vendors during a cocktail reception hosted by DSN March 6 at company headquaters.

During the party Antonini noted that the chain's five-year remodeling program was having tangible results, as evidenced by the 1991 sales and profits report.

For the year, Kmart completed 474 store projects which included opening 55 new fullsize Kmart stores. Also last year, Kmart replaced 51 stores, enlarged 164 others, closed 11 units, and refurbished 204 stores. By year-end, Kmart updated a total of 682 stores to its new look, or 30% of its U.S. store base.

Between 450 and 500 projects are scheduled for 1992. By the end of this year, Antonini said Kmart will have about half the chain outfitted with the "new modern format."

With American consumers less interested in where they shop and more interested in how much they save, Antonini, who received a plaque from DSN recognizing the chain's 30 years in retailing, commented on the blurring of retail channels in consumers' minds and on the changing marketplace.

Kmart, said Antonini, will continue to be in the forefront of American retailing.