Canadian fashion manufacturer and importer Algo Group Inc said sales for the first quarter ended 31 March 2002 were in line with expectations, falling to $25.1 million from $27 million last year.

Net loss at the ladies', men's and children's wear company was $180,000, compared with a net loss of $212,000 for the quarter.

Algo group president and CEO, Dan Elituv, said in a statement: "The closure of the US division of the Ladies' Fashion Business Unit and the termination of the license agreements with BCBG Max Azria, both of which occurred at the end of 2001, were the principal reasons for the sales decrease during the first quarter."