Kmart narrows loss; Limited, Intimate Brands dip

Kmart Corp.'s fiscal second-quarter loss narrowed after thediscount chain closed stores and reduced advertising costs. Profitsat Limited Inc. and its Intimate Brands Inc. unit fell as clothingsales declined. Limited, the second-largest U.S. apparel chain, andIntimate Brands also said earnings in the third quarter will fallmore than forecast as sales continue to drop. Other retailers thatreported results included No. 1 U.S. bookseller Barnes & Noble Inc.,which narrowed its loss in the quarter ended Aug. 4 to $1.69 millionfrom $8.65 million a year earlier. Sales rose 14 percent to $1.05billion. Kmart's loss narrowed to $95 million from $448 million ayear earlier. Sales in the quarter ended Aug. 1 fell 0.9 percent to$8.92 billion, hurt by the closing of 70 stores, from the year-earlier quarter. Net income at Limited fell 7.8 percent to $71.6million, or 16 cents a share, as sales declined 4.2 percent to $2.19billion. Limited expects to break even in the third quarter,compared with last year when it earned 11 cents a share. Per-shareearnings for the full year will "be down significantly," the retailersaid. At Intimate Brands, the biggest U.S. lingerie chain, netincome fell 31 percent to $68.9 million, or 14 cents a share, assales declined 3.4 percent to $1.15 billion. Intimate Brands alsosaid profit will break even in the third quarter and will fall thisyear. Bloomberg News