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Reported by Star-Bulletin staff & wire
Thursday, May 4, 2000
Disappointing sales to hurt Kmart's net
TROY, Mich. -- Kmart Corp., the second-largest U.S. discount chain, warned that fiscal first-quarter profit will be about half of what analysts expected because of disappointing Easter sales. The retailer said earnings will be about 5 cents a share, less than analysts' average estimate of 10 cents, according to First Call/Thomson Financial. In the year-ago quarter, Kmart earned 11 cents a share. Kmart will report results on May 11. Analysts began trimming their estimates last month because of slow sales, particularly of clothing. Kmart today said April same-store sales fell 0.8 percent, following a 1.2 percent drop in March and a 2.7 percent gain in February.
J.C. Penney CEO plans to retire
PLANO, Texas -- J.C. Penney Co.'s chairman and chief executive announced today that he will retire from the troubled retail chain. A search for his successor has already begun. The departure of James E. Oesterreicher comes as the Texas-based merchant struggles to fight for shoppers against its trendier rivals such as Old Navy, Kohl's and Macy's. Oesterreicher, 58, said he will remain at the helm until a successor is in place.
Mortgage rates rise to 8.28 percent
WASHINGTON -- The average interest rate on 30-year, fixed-rate mortgages rose to 8.28 percent this week from 8.13 percent last week, mortgage broker Freddie Mac said today. This time a year ago, 30-year mortgages averaged 7.02 percent. Fifteen-year mortgages rose to 7.94 percent this week, up from 7.79 percent. One-year, adjustable-rate mortgages averaged an initial rate of 6.90 percent, vs. 6.77 percent last week.