The Federated and Allied department stores, which have been operating under bankruptcy court protection for nearly a year, said Tuesday they lost $86.7 million in the three months ending Nov. 3. The companies called the figure a sign of improved performance in the face of a weakening economy and lower-than-expected sales. They lost $92.5 million in the same period last year before they sought refuge from creditors. Federated Department Stores Inc. said total sales for Bloomingdale's, Lazarus and its three other store chains fell 6.2 percent to $1.1 billion for the quarter. Allied Stores Corp. said sales for its four store chains fell 2.8 percent to $624 million. For the nine months ending Nov. 3, Federated and Allied said they lost $312.6 million, a lower figure than the $330.1 million they lost in the year-earlier period. Federated said sales fell 5.3 percent to $3.1 billion for the first nine months of the year. Allied, whose chains include The Bon Marche and Jordan Marsh, said sales fell 2.4 percent to $1.7 billion. Federated and Allied sought protection from creditors Jan. 15 because of inability to service $7.7 billion in debts accrued when they were taken over by the Campeau Corp. of Canada in the 1980s. A bankruptcy court has given them until February to file a reorganization plan. After that time, creditors may propose their own plans. Individually, Federated lost $57.8 million during the quarter, 14 percent above the $50.7 million it lost in the same period last year. Allied lost $28.9 million, 30 percent below its $41.8 million third-quarter loss last year. ``The consumer has not demonstrated a great deal of faith in the nation's near-term economic future, and there is little indication that this will change significantly in the closing weeks of the year,'' Federated and Allied chairman and chief executive officer Allen Questrom said. ``Still, we expect our earnings from operations will be consistent with our plans for the season.''
