Canadian fashion company Algo Group has posted lower fourth-quarter sales due to a strong Canadian dollar and weak consumer demand.

Fourth-quarter sales totalled CAD12.9 million compared with CAD14.9m in the same period in 2003, while net loss was CAD2.1m compared with last year's loss of CAD2.2m.

Full-year sales totalled CAD62.0m compared with CAD71.9m last year, with a net loss of CAD4.8m compared with a loss of CAD3.8m in 2003.

Algo Group's president and chief executive officer Dan Elituv said that the company's strategy to cut down on operating expenses "began to yield benefits" in the second half of the financial year, which meant a smaller loss from continuing operations during the third and fourth quarters.

Algo Group manufactures and imports ladies' fashion apparel and men's, boy's and children's sportswear as well as designing and importing fashion fabric which is marketed through apparel manufacturers and retail outlets.