Off-price apparel chain Factory 2-U Stores Inc on Thursday named ex-Wal-Mart Stores Inc president and chief executive William Fields as its new chairman and CEO.

The 53-year-old most recently served as chairman and chief executive of Apec China Asset Management Ltd and will replace Mike Searles.

Separately on Thursday, the firm posted a seven per cent slide in third quarter sales to $134.5 million from $145.6m last year amid a poor performance by its home division.

The operator of 261 stores said third quarter same-store sales fell 5.6 per cent with October same-store sales down 2.3 per cent.

Mr Searles said: "We continue to experience an improvement in our comparable store sales trend.

"Our women's division performed the best with positive mid single-digit comparable store sales, followed by our children's division with positive low single-digit comparable store sales.

"Our men's division had its best performance to date with negative low single-digit comparable store sales.

"Though our third quarter markdown volume and selling and administrative expense were comparable to the same period last year, lower sales volume eroded our gross profit and operating margins. As a result, for the third quarter, we expect a net loss in the range of $0.27 to $0.30 per share."