Kmart (Too Busy To Take Meetings) Reports $224 Million 3Q Loss

DETROIT AP reported that Kmart Corp.'s third-quarter loss tripled, but the discount retailer still beat Wall Street's expectations.

The company said Tuesday it lost $224 million, or 45 cents per share, in the three months ending Oct. 31, compared with a loss of $67 million, or 14 cents a share, in the year-ago period.

Excluding a hefty restructuring charge, the nation's No. 3 retailer lost $127 million, or 25 cents per share, in the quarter.

Analysts surveyed by Thomson Financial/First Call expected a loss of 27 cents per share.

``We continue to work at fixing our core business by being in-stock, pricing competitively and providing an excellent shopping experience for Kmart customers,'' Chuck Conaway, chairman and chief executive, said in a statement. ``We have made considerable progress in all of these areas but have a lot more work to do.''

In the 18 months Conaway has been at the helm, he has closed unproductive stores and made other changes to help the Troy-based retailer become more productive and more efficient. But the company has struggled to regain profitability.

Sales fell 2 percent to $8.02 billion from $8.20 billion in the year-ago period. Sales at stores open for at least a year, known as same-store sales, were down 1.5 percent.

Although much attention is paid to his company's performance against top competitors, Conaway said he sees an opportunity for Kmart to grab a bigger share of the market from traditional grocery and pharmacy stores. Now more than ever, he said, customers are attuned to price.

``That is a huge advantage during these economic times,'' Conaway said in a conference call with analysts.

With the holiday shopping season in full swing following the Thanksgiving weekend, Conaway said response is encouraging so far. In addition to sales gains, the company has seen an increase in customer count at its stores.

For the nine months ended Oct. 31, Kmart lost $344 million, or 70 cents per share, compared with a loss of $493 million, or $1 a share, in the comparable year-ago period. Revenue was slightly lower at $25.27 billion, from $25.39 billion.