Young women's apparel and footwear company Candie's Inc has posted a third quarter consolidated net loss of $4.9 million, compared to a loss of $788,000 in the same period a year ago.

The company also reported consolidated net revenue of $27.1m for the quarter, down from $43.2m in third quarter 2002.

However, administrative expenses dropped 41.6 per cent year-on-year to $6.3m for the period.

Candie's' transition to a new licensing business model has been blamed for the results.

"Our transition out of the operating footwear business will be complete by the end of this fiscal year," CEO Neil Cole said.

"Our new business model leverages our valuable Candie's and Bongo brands and we look forward to a stable and profitable company in the next fiscal year and beyond."