Casual clothing producer Tarrant Apparel Group has reported a third quarter net sales increase of $2.1 million, or 2.3 per cent, to $96.4m compared to the same period last year.

The company, a leading provider of private label casual apparel, said the increase included new business of $12.6m from subsidiary Private Brands Inc, offset by a decrease of $13.2m in net sales to Tommy Hilfiger.

"As we begin to see the results of our decision to exit the manufacturing of goods in Mexico, the positive change in direction is encouraging," chairman and CEO Gerard Guez said.

"We are extremely pleased with the response in the market to our return to the trading company model which features strong design and execution of our global sourcing network."