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Kmart Lost $5 Million Last Quarter

Expenses drop, although same-store sales do too.
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lost $5 million in the second quarter, sharply narrowing the quarter-billion-dollar deficit it posted last year while in the thick of a bankruptcy proceeding.

The discount retail chain also said it has enough money that it's weighing options for what to do with some of the financing it received upon emerging from Chapter 11 last spring.

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Kmart said it lost $5 million, or 6 cents a share, on sales of $5.65 billion in the latest quarter, compared with a loss of $293 million on sales of $7.18 billion a year ago. Same-store sales fell 5.4%.

The company's selling, general and administrative expenses fell to $1.23 billion in the latest quarter from $1.54 billion a year ago, reflecting among other things the closing of 600 stores and related layoffs in the five quarters ended March 31.

Kmart said it has about $1.2 billion in cash and equivalents, and borrowing availability of about $1.5 billion on a $2 billion credit facility. "In light of its favorable liquidity position, the company is exploring various alternatives to reduce the cost of its exit financing facility," it said in a release.