US fashion chain Harold's Stores announced a net loss of $140,000 for the third quarter, compared to a net loss of $2.1m in the comparable period of the previous year.

Third quarter results included a $1.3m one-time gain from the sale of a building, the company said. During the year-to-date period ending 3 November, the company's net loss was $5.4m, again narrowed from a net loss of $8.1m in the prior year nine-months.

Overall sales for the third quarter, Harold's said, were $21.5m compared with $23.3m for the same period in the previous year, a decrease of 7.8%. Total same-store sales were down 11.5%, declining 10.7% according to a statement.

"Although sales during the third quarter were much weaker than anticipated, the combination of reduced purchase levels and what we believe to be improved merchandise content resulted in higher gross margin dollars for the quarter. Store traffic was down over the prior year during the quarter, but the average sales per customer increased. In addition, selling, general and administrative expenses declined both in the aggregate and as a percentage of sales despite the sales declines. This can be attributed to the expense restructuring efforts undertaken last quarter," said Ron Staffieri, CEO.

Founded in 1948 and headquartered in Dallas, Texas, Harold's Stores currently operates 44 upscale ladies' and men's specialty stores in 19 states. The company's Houston locations are known as "Harold Powell."