Dec 24, 2002 By Bree Fowler Associated Press Writer 3 min read

DETROIT (AP) – Bankrupt retailer Kmart Corp. posted a loss of $383 million in the third quarter, as sales lagged and the company fought to rebound from its Chapter 11 filing. Kmart also said its November same-store sales were down 17.2 percent from the year-ago period, as it continued to report negative monthly sales.

The Troy-based retailer lost 76 cents per share for the 13 weeks ended Oct. 30, compared to a restated loss of $249 million – or 50 cents per share – in the third quarter of 2001. Earlier this month, Kmart said it was restating earnings from the first two quarters of this year and for prior years after problems were discovered as part of the company’s review of its accounting practices.

The adjustments related to several items, including a software programming error in Kmart’s accounts payable system and leasing issues.

James Adamson, the company’s chairman and chief executive officer, said Monday that Kmart is continuing to make progress in several areas. “Our reorganization team is hard at work finalizing a comprehensive business plan, analyzing our store base and taking other actions necessary to fulfill our goal of filing a proposed plan of reorganization with the court and emerging from Chapter 11 court protection as early as practicable in 2003,” Adamson said. Kmart’s review of its accounting followed anonymous letters claiming to be from employees that questioned the company’s accounting practices. The letters also spawned an investigation into the way the company was managed under its former executives.

Kmart reported net sales of $2.47 billion in November and $6.73 billion for the quarter. In the third quarter last year, Kmart had sales of $8.02 billion.

Kmart’s 2002 November sales figures don’t include the Thanksgiving holiday, which the 2001 figures do include. Thanksgiving weekend sales will be included in the December release.

Julian Day, the company’s president, said December started strong but the last two weeks have been softer than expected.

October same-store sales were down 3.9 percent from October 2001. Same-store sales are considered the best indicator of a retailer’s health. Excluding non-comparable items, discontinued operations and reorganization items, the company’s net loss was $390 million, or 78 cents per share.

, in the third quarter of 2002, compared with a net loss of $152 million, or 31 cents per share, in the third quarter of 2001.

Kmart filed for Chapter 11 protection on Jan. 22, following disappointing holiday sales and a stock dive. The discount retailer has closed 283 stores and is expected to announce another round of closings in January.

Last week, the New York Stock Exchange suspended trading of Kmart stock.

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On the Net:

http://www.kmart.com