Talon International Inc, the supplier of zippers, fasteners and trim products to the apparel industry, has narrowed its third quarter loss and says it is beginning to see signs of improvement in its business.

Net loss for the three months to 30 September were $647,000, compared with a loss of $2.44m in the same period last year.

Sales fell 18% to $10.4m, against $12.8m in the same period last year, with declines noted in all product lines.

However, the company said the rate of revenue decline has slowed with each consecutive quarter.

"In our view, the initial panic and elimination of retail inventories at the end of 2008 has passed, and we believe demand at the retail and wholesale levels is beginning to build as consumer confidence improves," noted CEO Lonnie Schnell.

He added that measures to slash costs, including cuts to its workforce, have also paid off.