Luxury goods retailer Barneys New York Inc on Tuesday revealed it had swung into a first quarter profit of $478,000 after recording a net loss of $3.3 million in the year-ago period,

The company said its financial performance had improved after it slashed costs and reduced inventory levels. It added sales for the 13-week period ended May 4 fell 1.7 per cent to $92.5m from $94.1m in the year prior.

Chief executive, Howard Socol, commented: "We continue to be encouraged by an improving sales trend. Given the strength of our gross margins and our on-going expense reduction initiatives, we believe we are well positioned for improved financial results in the months to follow."