Women's wear company Cygne Designs saw sales and gross profit surge in the first quarter of fiscal 2006, thanks to the company's acquisition of the branded and private label business of Diversified Apparel Resources (DAR).

Net sales for the period ending 30 April were US$20.9m, up from $5.6m in 2005. Of the increase, $19.2m was attributed to the new DAR business, with the dip in historic sales put down to a $3.8m slump in sales to New York & Company.

Gross profit was up from $632,000 to $4.9m, but the company made a net loss of $584,000, compared to a loss of $191,000 last year, because of costs associated with the DAR deal.

Cygne Designs acquired DAR's branded and private label business in July last year, also securing a supply agreement with the company for the first quarter. This boosted gross margins from 11.4% to 23.8%.