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Kmart Third-Quarter Profit Falls 22.4%: The giant discount retailer said earnings were hurt by price competition and losses in its warehouse club subsidiary. The Troy, Mich.-based company said earnings in the quarter ended Oct. 27 declined to $94 million, or 20 cents a share, from $122 million, or 27 cents a share, a year ago. Sales increased 10.5% to $9.77 billion, from $8.84 billion in 1992. The earnings decline reflected a $24-million operating loss at Pace Membership Warehouse, an increase in interest expenses and higher federal income taxes, Chairman Joseph Antonini said. He said lower retail prices due to increased competition cut into Kmart’s profit margins.