Apparel manufacturer and retailer Algo Group Inc on Friday reported a sharp fall in third quarter net profit to $300,000 from $800,000 in the year-ago period amid lower sales.

The company, which also designs and imports fashion fabric marketed through North American apparel manufacturers and retailers, said sales for the 13 weeks to September 30 slipped to $32.3 million from $37.1m in 2001.

Algo Group President, Dan Elituv, said the $4.7m decrease in sales is a result of the elimination of unprofitable lines. "The change is entirely attributable to the divisions which we closed at the end of 2001 including Bugle Boy and En Français," he explained.

"The sales in the continuing business units were similar to the previous year on an overall basis with outerwear suffering a decrease compensated by increases in the other business units."