Fashion accessories manufacturer Tandy Brands saw its losses narrow in fiscal 2006 as the company exited lower-margin product categories.

Fourth-quarter net sales were up 9.9% to US$47.1m, bringing full-year sales up 2.8% to $227.3m. The loss for the fourth quarter was $1m, and for the full year, it was $3.5m, down from $4m in 2005.

Sales were up thanks to continued strength in men's and women's belts, plus the sale of unwanted inventory from discontinued product categories.

President and CEO J S B Jenkins said the results were on target, but added that the company anticipates that fiscal 2007 sales will fall to $177m-182m, thanks to the company's exit from certain women's product categories in 2006.