Floyd Hall Quotations

Categories showing particular strength for the month included jewelry, home fashions, electronics, seasonal items, stationery, horticulture, cosmetics, consumables, books and photography.

With our eighth consecutive quarter of increased earnings per share, we continue to feel good about the turnaround momentum at Kmart.

Strong performance over the final weeks of the holidays helped Kmart's sales for December meet expectations. Categories showing particular strength included home-related items in areas such as appliances, decor, fashions and electronics, as well as do-it-yourself, consumables, stationery, prescription drugs, and seasonal items.

While the precise outcome of the legal process remains to be seen, Kmart believes that, in light of Hechinger's filing, it is appropriate to take the charge at this time. Considering current market conditions, we anticipate that Kmart will be able to convert or sub-lease most, if not all, of these properties within a reasonable period after they are returned.

Sales increases in our pharmacy, home fashions, health and beauty care, consumables and apparel areas, together with a substantial lift in gross margin rate, enabled Kmart to more than triple earnings per share in the quarter before the non-recurring charge.

June sales were ahead of plan, reflecting strong performance in hot-weather-related categories such as seasonal apparel, accessories, and specialty items.

With a planned IPO of BlueLight.com next year ... we are excited about the potential value of our holdings and the positive impact it will have on Kmart's value.

Despite the soft overall March performance, we saw gains in selected areas such as home related products and apparel which were affected by favorable weather and improved merchandise offerings.

September comparable sales were on plan, with strength in home appliances and electronics partially offsetting slow fall apparel results due to unseasonably warm weather. Other categories showing strong performance included home decor, outdoor sporting goods, jewelry, stationery, cosmetics and fragrances, cameras and accessories, consumables, seasonal items and pharmaceuticals.

What a lovely honor it is to have Spirit Airlines dedicate a new plane to our islands. We are most appreciative and wish Spirit Airlines wonderful success.