Trans World lost $14.3 million, or 36 cents per diluted share, on sales of $260.6 million in the company's fiscal third quarter ended Nov. 3. That compares with a loss of $11.4 million, or 43 cents per share, on sales of $297.7 million.

The 13% decline in sales is due to the reduction of stores to 963 by the end of the third quarter this year, as compared with 1,121 at the end of the corresponding period last year. Also, the company posted a 4% comparable-store decline for the third quarter. The company said that the decline in music sales continues to outpace the comparable-store gains in home video, video games, boutique and electronic items.

For the nine-month period ended Nov. 3, Trans World lost $33.4 million, or $1.08 per diluted share, on sales of $814.2 million. That compares with a net loss of $26.2 million, or $1.02 per share, that the company generated on sales of $884.5 million, in the nine-month period of the prior year. The nine-month loss could have been larger -- at $60.2 million -- but a $26.8 million tax benefit brought the total down.

So far this year, gross profit totals $293.7 million or 36.1% of revenues, while selling, general and administrative expenses equals $321.5 million, or 39.5% of revenue.

But the company managed to cut its operating loss to $55.1 million in the current year, versus the $57.5 million operating loss it posted in the first nine months of last year.