Leading designer, manufacturer and marketer of apparel and handbags, Jaclyn Inc, on Thursday said it swung to a second quarter profit amid higher sales and the acquisition of kids clothing maker Topsville early last year.

The New Jersey-based company posted a profit of $799,000 versus a year-ago loss of $116,000 with net sales more than doubling to $35.6 million from $15.6m in 2001.

For the first half, net profit was $1.1m compared to a net loss of $63,000 while net sales soared to $65.6m from $33.8m.

Chairman Allan Ginsburg said: "As anticipated, we are pleased to report that sales and earnings for the quarter and six months were significantly higher when compared to the same periods last year, reflecting the acquisition of Topsville in January 2002 as well as higher sales volume for each of our other divisions."

He added that ". . . while the first six months of this fiscal year reflect significant improvement in sales and earnings, operating results in the third and fourth quarters of fiscal 2003 may be lower than last year's comparable periods (excluding the effect of amortization of certain fair value adjustments relating to SFAS No. 141 in fiscal 2002) due, in part, to the non-renewal of the Anne Klein license on June 30, 2002 and the timing of certain shipments to customers.

"For this full fiscal year, however, overall operating results are still expected to be substantially better than fiscal 2002."