Career and sportswear company Bernard Chaus has posted a drop in third-quarter income, driven down by start-up costs for its new Kenneth Cole line.

Quarterly income was US$950,000 compared to $1m last year, as revenues slipped to $39.7m from $41.6m a year ago.

Chairwoman and CEO Josephine Chaus said: "During the quarter, our new Kenneth Cole Reaction women's line debuted in department stores, and we have been pleased with the initial response from consumers.

"Overall results for the quarter, however, continue to reflect the start-up costs associated with this new business. In addition, performance was adversely impacted by lower revenues in the Cynthia Steffe product lines, as compared with the third quarter last year."