Young girls' clothing retailer Too Inc has reported a 40 per cent hike in third-quarter earnings, as its boosted sales and improved its merchandise margin.

Quarterly net income totalled $16.0 million compared to $203.5m last year, as net sales grew 16 per cent and same-store sales rose 8 per cent.

Limited Too posted an 8 per cent rise in same-store sales compared to an 11 per cent rise last year. Justice's same-store sales were up 19 cent.

Chairman, president and chief executive officer Mike Rayden said: "Limited Too and Justice are producing great top-line results, while remaining less promotional and controlling expenses".

For the nine months ended 29 October, Too's net income totalled $27.4m compared to restated income of $18.0m last year. Net sales were $522.9m compared to $469.1m a year ago.

Justice opened 20 stores during the 2005 third quarter, while Limited Too remodeled 11 stores and opened 9 new ones.

Limited Too sells sportswear, related accessories and lifestyle items for active, fashion-aware girls between the ages of seven and 14.

Justice sells sportswear, accessories and lifestyle items to value-conscious 7-to 14-year-olds.