Upmarket sportswear company Cutter & Buck Inc has reported a lowered fourth-quarter profit after sales fell in the company's two biggest business divisions of corporate and golf wear.

Fourth-quarter net income totalled $2.8 million compared to $5.6m in the same period last year. Sales for the quarter totalled $34.9m compared to $38.4m a year ago.

The company also reported a full-year 2005 sales fall from $128.4m to $126.6m. Full-year profit, however, totalled £8.6m compared to £7.9m last year.

Tom Wyatt, chief executive officer, said: "While the fourth quarter did not fully meet our expectations and our sales were down slightly for the year, we are pleased that our gross margins were up and, consequently, we were able to show improved gross profit dollars and a relatively flat pre-tax income before restatement costs for the year."

The company said that it believes its golf business will take longer to transform than originally thought, and that it predicts a "modest increase" in 2006 sales.

Cutter & Buck designs and markets upscale sportswear that it sells primarily to golf and specialty retailers, corporations and international distributors and licensees.