Young women's apparel and footwear retailer Gadzooks Inc has posted a net loss of $22.1 million for the third quarter, compared to a loss of $856,000 for the same period last year.

The Dallas-based company, which operates 411 namesake stores across the United States, also saw net sales fall 33.2 per cent to $49.2m for the quarter, down from $73.7m recorded for the same period of 2002.

The company has blamed a $8.7m non-cash valuation allowance, recognised during the quarter to reduce deferred tax assets, for impacting the loss.