NEW YORK — After a two-week review by Price Waterhouse, Woolworth Corp. reported Wednesday that its $495 million loss for the year ended Jan. 29, 1994 was correct as reported and will not be restated.
However, quarterly statements during the year were restated, shifting figures in the quarters, but coming up with the same total for the year.
Woolworth said the review, caused by the retailer’s announcement March 30 of “accounting irregularities,” forced it to restate 1993 quarterly results, due to corrections in gross margins and certain selling, general and administrative expenses.
Results for the year ended Jan. 30, 1993, were similarly unchanged following the review.
Late Wednesday, Lawrence A. Marsiello, president of CIT Group/Commercial Services, the nation’s largest factor, said his firm was opening up credit to Woolworth’s immediately. On March 20, a number of factoring firms had stopped shipments to Woolworth.
In restating quarterly results, profits of $1 million in the first quarter became a loss of $24 million. In the second quarter, $2 million in profits became losses of $10 million. However, in the third quarter, the loss was cut to $350 million from the $452 million originally reported. In the fourth quarter, the $46 million loss originally reported was increased to $111 million.
The third-quarter loss, as originally reported, was cut by a decision to record in that quarter a special gain of $145 million previously taken in the fourth quarter. That gain resulted from the reversal of part of a previously taken reserve to cover store closings and reformatting.
At the same time, Woolworth said the board’s special committee is proceeding with an investigation into the circumstances of the accounting problems. The accounting troubles forced two top executives to step aside temporarily and prompted Wall Street to push the stock down 17 percent in the two days following the announcement.
Woolworth also declared a quarterly cash dividend of 29 cents although analysts had expected a dividend cut.
Woolworth stock closed Wednesday at 17 1/4, up 2, in trading on the New York Stock Exchange.