Teen-oriented fashion chain Delia's Corp on Tuesday revealed its third-quarter loss more than tripled due to merchandising "miscues".

The New York-based operator of 65 stores reported a net loss of $10.7 million, or 23 cents per share, compared with a net loss of $3.2m, or seven cents a share, in the year-ago period. Sales were flat at $32.9m versus $32.5m in 2001.

CEO Stephen Kahn said: "The second and third quarters were the most difficult and disappointing in Delia's history. Significant Back to School product and planning miscues negatively affected performance in both the retail and direct channels.

"Accordingly, beginning in early August, we took austere steps to rationalise our overhead costs and work through our excess inventory. To address overhead, we reduced headcount by approximately $3.5m, representing approximately 20 per cent of corporate payroll."

He added: "As a result of the above steps, both our direct and retail businesses have improved over the course of the holiday season and we currently expect to be operationally EBITDA positive in the fourth quarter. Additionally, we anticipate healthy inventories at seasonally appropriate levels heading into Spring."

Separately on Tuesday, the company named COO Evan Guillemin to the additional role of CFO to replace Dennis Goldstein who left to pursue other interests.