Tuesday, Sept. 11, 2001 | 9:39 a.m.
THE ASSOCIATED PRESS
NEW YORK -- In management's latest effort to pitch Kmart's revival prospects, the company's chairman and chief executive Chuck Conaway spelled out specific long-term operation goals, while offering a report card on its business.
In a 90-minute meeting with investors and analysts Monday, Conaway said that Kmart has an opportunity to gain 300 to 500 basis points in gross margin through reduced markdowns along with efficiencies derived from a more streamlined distribution system. Conaway also indicated that over the next three to five years, Kmart's earnings before interest and taxes should grow 4 percent to 5 percent annually.
But while Wall Street analysts applauded the company's plans to modernize its distribution systems, which include overhauling its product-delivery software, they still expressed concern about the company's prospects for a turnaround.
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