• Q3 losses widen to US$552.1m
  • Gross margin narrows to 39.7%
  • Sales climb 22.6%

US children's apparel retailer Gymboree Corporation has widened its net loss in the third quarter, but the company says it is making progress with sales up nearly 23%.

Net losses amounted to US$522.1m in the three months ended 1 November. This compared to a loss of $24m a year earlier.

Gross margin narrowed slightly to 39.7% of net sales, from 39.8% in the third quarter of fiscal 2013.

Net sales, however, climbed 22.6% to $316.8m, compared to $309.8m in the prior year period.

CEO Mark Breitbard, said: "We made progress in the third quarter, which resulted in increased net sales, positive consolidated comparable sales, and increased gross profit dollars as compared to the prior year. During the quarter, our customers responded favourably to our merchandising and marketing strategies, which lead to a significant improvement in trend as compared to the first half of the year. As we begin the holiday selling season, we are encouraged that our comparable sales trend continued in November."