For the year, net sales were up 1% to $399.3 million from $396.3 million, and comparable store sales rose by 2%. The downside was that the company had a net loss of $10.5 million for the year, which was, however, an improvement compared to a net loss of $19.1 million for FY 2003.

Company officials were upbeat at yesterday's conference call. "Several favorable factors came together to achieve meaningful improvement in sales and operating results," Raphael Benaroya, United Retail's chairman/president/CEO, told analysts. "Certain holiday categories posted solid improvements in sales over last year. Also, spring transition merchandise worked well and produced strong year-to-year sales increases in the warmer parts of the country. Our design and merchant groups coordinated effectively in putting the merchandise assortment together.

"Our company also achieved a significant increase in transactions during Q4," he continued. "More focused customer relationship management contributed to that, using customer segmentation and targeting for the company's marketing."

And it appears some of that momentum is carrying over into the new FY. Company officials yesterday also released United Retail's February results, indicating a net sales increase of 11%, to $29.9 million from $26.9 million in February 2004. Comparable store sales also showed a solid gain, 13% for the month.

"The continuing improvement in sales is beginning to have a meaningful effect on our financial performance," George R. Remeta, United Retail's vice chairman and chief administrative officer, told analysts yesterday. "The increase in comparable store sales, particularly during Q4, leveraged buying and occupancy expenses, which significantly improved gross profit as a percent of sales.

"Also, general, administrative and store operating expenses declined as a percentage of sales, this despite the company's having successfully negotiated an agreement t settle a wage and hour class action pending in California, subject to court approval," he continued. "That, along with legal expenses, resulted in an additional charge to earnings of $900,000 in the quarter."

United Retail specializes in large-size women's apparel, footwear and accessories, which it sells through its more than 500 Avenue stores, as well as through its avenue.com web site.