Garment distributor Nitches Inc reported a drop in third-quarter sales on a fall in unit sales in its sleepwear collection.

For the three months ended 30 November 2004, net sales totalled $6.3 million compared to $6.8m for the first quarter of 2004. Net loss for the quarter totalled $12,000 compared to net income of $489,000 for the year-ago period.
Results for the current period incorporate a non-cash income of $159,000 connected to the company's 28 per cent interest in Designer Intimates Inc, which it acquired in October 2002. Net income for the prior period included a non-cash income from Designer Intimates of $468,000.

Nitches Inc is an importer and wholesale distributor of men's and women's garments, manufactured to specifications primarily in foreign countries.