Floyd Hall Apparel Quotations

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.

Kmart's sales for October were on plan despite softer apparel sales due to unseasonably warm weather during the latter half of the month. Sales volumes for the third quarter were near expectations. Categories showing particular strength for the month included home appliances and electronics, do-it-yourself, home decor, cosmetics and fragrances, consumables, stationery and pharmaceuticals.

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.

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.