April 27, 2020 / 10:52 PM / a month ago

BRIEF-Wesfarmers Says While Kmart Remains Profitable, Target Earnings Have Decreased Significantly

April 28 (Reuters) - Wesfarmers Ltd:

* WHILE KMART REMAINS PROFITABLE, TARGET EARNINGS HAVE DECREASED SIGNIFICANTLY

* OVER LAST 2 MONTHS, BUNNINGS & OFFICEWORKS EXPERIENCED SIGNIFICANT DEMAND GROWTH

* EXTENDED ITS AVAILABLE COMMITTED DEBT FACILITIES BY ABOUT $2.0 BILLION TO ABOUT $5.3 BILLION

* SUSTAINED DECLINE IN SALES MOMENTUM WILL MATERIALLY IMPACT PROFITABILITY OF KMART, TARGET

* ACCELERATED ITS PLANS TO IMPROVE FINANCIAL PERFORMANCE OF TARGET

* IN KMART & TARGET, SALES GROWTH IN Q3 BROADLY IN LINE WITH LEVELS ACHIEVED IN FIRST HALF OF FY

* IN RECENT WEEKS, IN-STORE SALES MOMENTUM HAS MODERATED IN KMART AND HAS DECLINED SIGNIFICANTLY IN TARGET

* PLANS INCLUDE REVIEW OF ACTIONS TO IMPROVE SHAREHOLDER RETURNS, ASSESSMENT OF STRATEGIC OPTIONS FOR “COMMERCIALLY VIABLE” TARGET

* IN RECENT WEEKS, RETAIL BUSINESSES MADE SIGNIFICANT PROGRESS IN FURTHER ENHANCING RESPECTIVE DIGITAL OFFERS

* IN NEW ZEALAND, KMART & SOME BUNNINGS STORES REMAIN CLOSED Source text reut.rs/2VIC5ZX Further company coverage:

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