Branded lifestyle line Big Dog Holdings Inc today said sales for the fourth quarter ended 31 December 2001 fell by $1 million to $40.0 compared to the previous year.

Andrew Feshbach, chief executive officer, said: "Although we posted a comparable store sales decrease of 2.8 per cent for the quarter, we have seen our sales recover after an immediate decline in business following the events of September 11. This recovery continued through the end of the year. In December we trended up, posting a 1.5 per cent comparable store sales increase."

Sales for the year ended 31 December 2001 were $112.4 million as compared to $115.3 million for 2000.

Mr Feshbach added: "We believe there are a number of opportunities for enhancing our growth and profitability, including possible acquisitions. On September 7th, we had agreed to purchase Crazy Shirts, a casual sportswear company based in Hawaii, but we ultimately pulled back when we saw a material adverse change in their business resulting from effects that the events of September 11 had on Hawaiian tourism.

"In anticipation of this transaction we had set up a new $30 million credit facility with Wells Fargo Retail Finance. This facility gives us the flexibility needed to quickly respond to future opportunities that will integrate well into our operations."