Leather clothing retailer Danier Leather Inc has reported a loss of $3.4 million, or 49 cents a share for the first quarter of the 2005 fiscal year, compared to a loss of $4.1m, or 59 cents a share, in the same period last year.

Reported sales increased six per cent to $24.6m from $23.3m in the comparative-year period, whilst same-store sales rose 5 per cent from the last fiscal year.

The company said some of this growth was due to an increased focus on accessories.

JeffreyWortsman, president and chief executive of Danier said in a statement: "In fiscal 2005 we will continue to narrow and deepen our merchandising, trim our response times in replenishing fast-moving items, and improve processes across the company."

Toronto-based Danier Leather operates 90 stores across Canada and New York.