A sales surge of nearly 33% in the nine months to 30 September helped children's wear specialist My Vintage Baby to narrow its losses by 42%.

Reporting on the third quarter of 2008, the company said gross sales for the nine-month period were up 32.8% to US$1.1m.

Rising margins had helped to cut the nine-month loss to $390,000 from $676,000 in the same period of 2007.

"We are very pleased with our third quarter results, which mark another quarter of strong gross profit growth and demonstrate a measurable improvement in profitability," said CFO Jeff Welsh.

My Vintage Baby confirmed that spring and summer orders worth $400,000 would begin shipping in early February.

The company added that it was targeting sales through its newly established website to minimise its exposure to the current retail slowdown.