Designer and licensor of fashion apparel for all ages, Mossimo Inc, on Wednesday posted a sharp fall in second quarter net profit.

The California-based company reported net earnings for the period ended June 30 of $1.8 million, or 12 cents a share, compared to $3.7m, or 23 cents, in the same period of the previous financial year.

Revenue fell to $6.9m from $7.4m last year when it was boosted by $1.5m of non-recurring revenue.

Chairman and CEO, Mossimo Giannulli, said: "We were pleased with the performance of Mossimo branded product at both Target and Zellers during the period, which drove our 16 per cent year-over-year increase in recurring revenue and allowed us to report pre-tax net earnings that were slightly ahead of expectations.

"Our results underscore the ongoing strength of the Mossimo brand in our core apparel and accessory categories along with positive reaction to new product extensions such as our home products in Canada introduced earlier this year."

He added: "Our solid results for the first half of fiscal 2003 bodes well for the remainder of the year. We remain dedicated to capitalising on the opportunities that we have created while executing a strategy that results in long term growth and increased shareholder value."