Canadian swimwear retailer Groupe Bikini Village posted a net loss on continuing operations of CAD$2.1m (US$1.69m) in the third quarter, as compared to a net loss of $1.3m in Q3 last year.

Wider losses in the quarter were attributed to the economic downturn and its renovation and expansion, which offset positive impacts of the company's recently-expanded retail presence.

Net sales for the third quarter and the nine-month period ended 1 November were $5.2m and $27.9m, respectively, compared to $5.4m and $26.9m in the corresponding periods of the previous year.

Same-store sales decreased by 8.5% for the quarter and 2.6% for the nine-month period ended the same date.

For the nine-month period the company's net loss totalled $1.1m, as compared to $130,000 in the same period in 2007.

Groupe Bikini Village said in its outlook it was managing the effects of the economic downturn on its business, through a new marketing strategy and adjusted renovation strategy to leave expiring leases in favour of smaller locations in high-traffic areas of malls.

Yves Simard, president and CEO of Groupe Bikini Village, said: "Our company continues to manage through challenges like the current economic downturn by adjusting its strategies to suit the realities of the marketplace."