Women's apparel maker Movie Star Inc has registered a pre-tax loss of $1.06 million for the third quarter, compared with a pre-tax profit of $1.6m in the same period a year earlier.

The company, which produces and sells sleepwear, robes and leisurewear, also posted a net loss of $636,000 for the period, compared with net income of $961,000 in the previous third quarter.

Net sales, meanwhile, fell 28.1 per cent to $12.17m for the quarter, down from $16.93m in the comparable year-on-year period.

CEO Mel Knigin said the reduced sales were due to a poor holiday season in the intimate apparel market.

"In spite of these lower results, the strength of our balance sheet is quite apparent," he said.

"Our cash position has improved and our receivables and inventory are in extremely good shape."