1 EXHIBIT 12 WOOLWORTH CORPORATION COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Unaudited) (dollars in millions) Fiscal Fiscal Fiscal Fiscal Fiscal 26 weeks Year Year Year Year Year ended ended ended ended ended ended July 26, Jan. 25, Jan. 27, Jan. 28, Jan. 29, Jan. 30, 1997 1997 1996 1995 1994 1993 -------- -------- -------- -------- -------- -------- NET EARNINGS Net income (loss) $(180) $ 169 $(164) $ 47 $(495) $ 280 Income tax expense (benefit) (107) 111 (69) 49 (303) 157 Interest expense, excluding capitalized interest 25 77 124 110 86 94 Portion of rents deemed representative of the interest factor (1/3) 57 230 224 211 210 199 ----- ----- ----- ----- ----- ----- $(205) $ 587 $ 115 $ 417 $(502) $ 730 ===== ===== ===== ===== ===== ===== FIXED CHARGES Gross interest expense $ 25 $ 77 $ 124 $ 111 $ 86 $ 94 Portion of rents deemed representative of the interest factor (1/3) 57 230 224 211 210 199 ----- ----- ----- ----- ----- ----- $ 82 $ 307 $ 348 $ 322 $ 296 $ 293 ===== ===== ===== ===== ===== ===== RATIO OF EARNINGS TO FIXED CHARGES -- 1.9 .3 1.3 -- 2.5 ===== ===== ===== ===== ===== ===== Earnings were not adequate to cover fixed charges by $287 million, $233 million and $798 million for the quarter ended July 26, 1997 and for the fiscal years ended January 27, 1996 and January 29, 1994, respectively.