Weak Apparel Sales to Depress Kmart Profit

Slow sales and heavy markdowns in its women’s apparel division will depress Kmart Corp.’s earnings for the second quarter, the nation’s third-largest retailer said. Kmart said strong sales in other merchandise areas were offset by weak results in women’s apparel in June. Chairman Floyd Hall said the company is looking for new management for the women’s division and hopes to turn that business around in the second half of the year. In the second quarter last year, Kmart earned $34 million, or 7 cents a share. That was its first profit on continuing operations since the third quarter of 1994. Kmart shares fell 38 cents to close at $11.50 on the NYSE.