Designer, manufacturer and marketer of apparel and handbags, Jaclyn Inc, on Thursday revealed it more than halved its first quarter net loss compared with the year-ago period despite a slight fall in sales.

The New Jersey-based firm, which bought children's clothing maker Topsville Inc last year, had a net loss of $213,000, or nine cents a share, versus $505,000, or 20 cents per share, in 2002. Sales fell to $20.8 million from $22m last year.

Chairman Allan Ginsburg said: "Due primarily to the non-renewal of our licensing arrangement with Anne Klein, this year's third quarter sales were below sales for the same period last year, and we incurred a loss for the quarter.

"However, as previously reported, we expect this year's full fiscal results to be substantially better than last year, mostly due to the addition of the children's apparel business, and due to increased sales in our women's sleepwear division."