New Albany, Ohio Tween Brands reported Tuesday a profit of $5.9 million for the third quarter, compared with a loss of $0.8 million in the year-ago period. The swing was attributed by the company to higher sales and lower costs in the quarter.
The kids clothing retailer reported net sales for the third quarter ended Oct. 31 increased 2.0% to $259.3 million, compared with $254.3 million in the third quarter of fiscal 2008, driven predominantly by a 35% increase in on-line, direct-to-customer sales. Analysts expected revenue of $232 million.
Comp-store sales declined 2%.
"We continue to increase our share of the 7-14 Tween Girl apparel market and this has helped us significantly improve comparable-store sales in the current economy. This momentum, along with the proposed merger with Dress Barn, which our stockholders are scheduled to vote on next week, has us very energized as we look forward to the future," said chairman and CEO Michael Rayden in a statement.
Tween Brands ended the quarter with 905 stores. During third quarter 2009, the company opened five stores and closed three stores. Fourteen stores have been closed year-to-date.