Women's apparel firm Bernard Chaus Inc has posted a drop in third quarter net income to $1.8 million, down from $2.1m in the same period a year earlier.

The company, which markets its products under the Josephine Chaus and Cynthia Steffe brand names, also reported a 6.7 per cent jump in third quarter revenue to $43.7m, compared with $41m in the previous third quarter.

"Our results for the third quarter reflect solid performance in our SL Danielle division and encouraging initial results in the Cynthia Steffe division acquired in January 2004," CEO Josephine Chaus said.

"We are pleased that our brands for non-department store distribution and our private label business are doing well and expanding our presence beyond our traditional department store channel."

Chaus said lower sales of the company's core Josephine Chaus line and higher expenses associated with its Cynthia Steffe business contributed to the company's lower income.