Kmart Corp. (KMRT: chart), a discount retailer based in Troy, Michigan, narrowed its second-quarter loss to six cents a share, compared with 58 cents a share in the year-ago quarter, due to significant cost cutting. Revenue fell 21 percent to $5.65 billion.

PetsMart (PETM: chart), a retailer of pet food and supplies based in Phoenix, Arizona, beat analyst expectations as it posted second-quarter net income of 19 cents a share, up from 15 cents in the same period last year. Revenue increased 11 percent to $725.8 million, helped by improved margins and better comparable-store sales.

Alloy Inc. (ALOY: chart), a catalog and mail retailer based in New York, beat analyst expectations by two cents as it reported second-quarter loss of two cents a share, compared with break even profit in the year-ago quarter. Revenue jumped 55 percent to $80.5 million, helped by its sponsorship business.

Dollar General Corp. (DG: chart), a discount retailer of general merchandise based in Goodlettsvile, Tennessee, reported second-quarter net income of 18 cents a share, up from 13 cents in the year-ago quarter. Revenue increased 14 percent to $1.65 billion due to same-store sales growth and the addition of new stores.

Kirkland’s Inc. (KIRK: chart), a home decorations retailer based in Jackson, Tennessee, posted second-quarter earnings of four cents a share, in-line with its earlier outlook but down from 14 cents a share in the comparable period last year. Revenue jumped 5.7 percent to $79 million. Shares hit a 52-week high of $20.75 on Thursday.

Deb Shops Inc. (DEBS: chart), a teen clothing retailer based in Philadelphia, Pennsylvania, reported second quarter earnings of 20 cents a share, down from 52 cents in the same quarter last year. Revenue fell more than five times to $73 million amid bad weather and slow same-store sales. The company warned that it might miss fiscal 2004 estimates. It expects earnings of 70-80 cents a share, below its previous estimate of $1.25-1.30.

Kellwood Co. (KWD: chart), an apparel and consumer goods maker based in St. Louis, Missouri, beat First Call analyst expectations in the second quarter by three cents but warned about the second half of the year. Earnings in the second quarter were $6.7 million, or 25 cents a share, up from the year-ago profit before items of $4.4 million, or 28 cents a share. Revenue rose 14 percent to $526.8 million due to an improved gross margin.

The company expects earnings of $1.05 to $1.10 a share in the third quarter, below analyst forecast of $1.17. Results in the second half of the year will be hurt by lower than expected bookings of for its fall and holiday business, increased spending related to two new licensing agreements, and its decision to discontinue its European hosiery business.

Zale Corp. (ZLC: chart), a jewelry retailer based in Irving, Texas, posted fiscal fourth-quarter net earnings of nine cents a share, down from 11 cents a year ago. Excluding items, earnings were 21 cents a share, up from 15 cents a year earlier. Revenue climbed 1.6 percent to $442.4 million due to cost cutting.

Ultimate Electronics Inc. (ULTE: chart), a retailer of consumer electronics based in Thornton, Colorado, said loss in the fiscal second quarter widened to 12 cents a share, compared with seven cents in the year-ago quarter. Results reflect lower sales and increased costs for new store openings. Revenue jumped nine percent to $154.2 million.

The company expects a loss of 7 to 11 cents a share in the third quarter and earnings of 51 to 56 cents in the fourth quarter. Analyst are projecting a third quarter loss of a penny a share and a fourth quarter profit of 44 cents.

Technology

Western Digital Corp. (WDC: chart), a designer of hard drives for desktop PCs based in Lake Forest, California, raised the revenue outlook for the current quarter and said its recent acquisition of Read-Rite Corp. would boost its earnings nine months earlier than planned, i.e. as early as the fiscal second quarter. Revenue in the first quarter is seen at $690 million to $700 million, the high end of its previous forecasts.

Shares of Western Digital closed up 20.8 percent at $11.48 on Thursday.

C&D Technologies Inc. (CHP: chart), an electrical power technology company based in Blue Bell, Pennsylvania, said net income in the second quarter ended July 31 was 14 cents a share, down from 18 cents in the same period a year ago, but above First Call analyst expectations of 14 cents. Revenue fell 3.6 percent to $81.36 million.

Novellus Systems Inc. (NVLS: chart), a chip-equipment maker based in San Jose, California, said it expects third-quarter revenue of $215 million to $220 million, compared with its earlier forecast of $220 million. The company reiterated its expectations for third-quarter orders of about $220 million and a break-even bottom line before charges.

Gerber Scientific Inc. (GRB: chart), a maker of automated manufacturing equipment based in South Windsor, Connecticut, reported first-quarter earnings of two cents a share, down from 10 cents in the year-ago period. Results reflect higher pension and interest expenses. Revenue climbed 2.5 percent to $129 million.

Financial Services

Swiss Reinsurance Co., the world's second-largest reinsurer, said first-half profit surged as premiums advanced and rising stock markets cut writedowns. Net income rose to 691 million Swiss francs ($489 million) from 118 million francs a year ago. Analysts on average had forecast first-half profit of 505 million francs.

ACE Cash Express Inc. (AACE: chart), a check cashing services company based in Dallas, reported fourth-quarter earnings of 52 cents a share, up from 19 cents a year ago, due to an insurance payment. Revenue declined 1.5 percent to $53.8 million. For fiscal 2004, ACE Cash Express expects earnings of $1.38 to $1.42 a share on revenue of between $235 million and $240 million.