Analysts say Kmart far from recovering -
[Cached Version]
Published on: 11/26/2001
Last Visited: 11/26/2001
And retail analyst Brian James with Loomis, Sayles & Co in Boston said Kmart -- and Conaway -- may be running out of time.
...
"If they can't change something dramatically, then their ultimate destination is oblivion," James said."I think competitively, right now there is no reason for them to exist.If they did not exist right now, no one would miss them."
He said although Conaway has made some good moves, none has produced improvements in sales and profits.
"Hopefully the economy will improve next year so he'll have the wind in his back and not in his face," James said.
Kmart is scheduled to release third quarter earnings Tuesday.Wall Street analysts surveyed by First Call/Thomson Financial are predicting a loss of 27 cents per share.
Kmart sales were flat in the second quarter, though the company managed to narrow its losses to $95 million, or 19 cents per share, compared with a loss of $448 million, or 93 cents a share, in the year-earlier period.
Earlier this month, Moody's Investors Service said it was placing the retailer's credit rating on review for a possible downgrade, citing concerns that the retailer's debt level wouldn't be significantly reduced soon.
...
James called Martha Stewart's line "a really bright spot" at Kmart.