Kmart Corp has posted its second consecutive quarterly loss of more than $1 billion - although James B Adamson, Kmart's chairman and chief executive, said the company is making progress.

On Friday the discount retailer revealed it lost $1.45 billion for the first three months of this fiscal year, its first full quarter since it filed for federal bankruptcy protection on 22 January 2002. During the same period last year, Kmart lost $233 million.

Net sales for the quarter were $7.64 billion, a decrease of 8.4 per cent from $8.34 billion in 2001.

Analysts said the results are typical of a company in its early stages of bankruptcy, and that the next quarter's results will tell the true story.