Comfort shoe manufacturer Phoenix Footwear saw second quarter losses narrow as sales and product prices improved.

The company said that net losses from continuing operations narrowed to US$359,000 over the quarter ended 29 June, from a $470,000 loss during the second quarter of fiscal 2012.

Net sales from continuing operations increased 9.2% to $3.44m.

Gross margins improved to 37.1% against 36.2% in the prior year period. The company said the improved gross margin was primarily due to an increase in the average net unit price of 5.9% and a 2.4% increase in the volume of full priced goods sold during the period. The average price of goods increased 4.5% over the quarter.

Over the half, losses from continuing operations narrowed to $91,000 compared to a $209,000 net loss in the prior year period. Net sales from continuing operations increased 4.3% to $9.2m.