Krispy's sales continue fall; it expects loss.

Byline: Brian Louis

Apr. 18--Sales continue to drop at Krispy Kreme Doughnuts Inc., the company said in a regulatory filing yesterday.

The company also said it expects to report a loss for its fiscal fourth quarter and full year ended Jan. 29 because of the drop in sales and the costs to deal with its legal and regulatory problems.

The company expects to report fourth-quarter revenue of $120 million, down 26 percent from $162 million in the period a year earlier.

For the full year, the company expects to report $540 million in revenue, down 24 percent from the previous fiscal year.

The company said that revenue dropped for a variety …