Sportswear maker G-III Apparel Group Ltd on Tuesday posted a 13.2 per cent drop in third-quarter profit. 

For the three-month period ended 31 October, net income was $9.9 million or $1.33 per diluted share, down from $11.4m or $1.50 per diluted share in the same period of 2003.   

Net sales were $114.9m, a drop from the $125.5m posted last time.

Three-month gross profit totalled $33.6m compared to $37.3m in the year-before period.

For the nine-month period G-III saw sales of $175.3 million and net income of $3.4m, or $0.46 per diluted share, down from sales of $189.6m and net income of $11.5m, or $1.54 per diluted share, in the comparable period in 2003.

Gross profit for the first nine months of 2004 was $45.8m versus $57.4m in the prior year.

The company said the results were impacted by a non-cash charge of $882,000 linked to the sale of its joint venture interest in a factory in China.

Morris Goldfarb, G-III's chief executive officer said that although the company is likely to score below its plan for the year as a whole, it will make good use of its expansion potential next year in terms of both enhancing existing business and creating new ones.

The company last week announced that it had renewed its deal with the Kenneth Cole apparel company for ladies' outerwear, and extended its partnership to include men's outerwear.