Nitches Inc Monday announced that the board of directors has approved the distribution of a special dividend of $.35 per share to the holders of record as of July 27, 2001.

The dividend will be paid on August 17, 2001. The company evaluates its ability to declare a dividend on a quarterly basis, contingent upon profitability and financing needs.

Nitches Inc also announced today its results for the three and nine months ended May 31, 2001. Net sales for the third quarter of fiscal 2001 were $8.7m versus $10.6m reported for the third quarter of last year.

The sales decline was primarily the result of a decrease in unit sales in the company's sleepwear line. The company reported net income for the recent quarter of $359,000, or $.34 per share, compared to net income of $646,000, or $.61 per share, for the year earlier period.

For the nine months ended May 31, 2001, net sales were $26.8m versus $31.8m for the nine months ended May 31, 2000. The sales decline was primarily the result of a decrease in unit sales in the company's sleepwear line.

The company reported net income for the recent nine months of $997,000, or $.94 per share, compared to net income of $1,551,000, or $1.46 per share, for the first nine months of fiscal 2000.

Additionally, Nitches' board announced that Paul M. Wyandt was recently named president and chief operating officer of the company and was appointed to the board of directors. Wyandt has been with the company for four years, managing its accounting, e-commerce development and information systems.

Steven P. Wyandt, who had been president, retained the titles of chairman, chief executive officer, and chief financial officer of the company.