Ladies' sportswear maker Donnkenny Inc on Monday said third-quarter net sales dropped 3.4 per cent to $22.6 million, from $23.4 million in the same period last year.

Gross margin as a percentage of sales fell to 7.5 per cent from 22.2 per cent in the third quarter of 2003.

Net losses widened to $5.0m or $1.15 per share from a net loss of $0.4m or $0.09 per share in 2003.