Fashion group Mossimo Inc has posted a 15 per cent year-on-year rise in fourth quarter revenue on the back of purchasing California-based casual apparel brand Modern Amusement.

The acquisition, financial details for which were not disclosed, will see the company extend its reach within the 18- to 35-year-old market with Modern Amusement's wide availability through Fred Segal, Urban Outfitters and Bloomingdale's stores.

"This acquisition represents another important step in our ongoing effort to further diversity our operations and create additional sources of growth for the future," CEO Mossimo Giannulli said.

"At the same time, we remain committed to providing Target and Zellers with the highest level of service and we are dedicated to capitalising on the many opportunities that lie ahead."

Meanwhile, Mossimo's revenue for the fourth quarter rose to $3 million, compared to $2.6m in the same period a year earlier.

Similarly, the company narrowed its pre-tax loss for the quarter to $12,000, compared to $1.05m in fourth quarter 2002.

Net earnings, however, sunk to $693,000 for the quarter, down from $5.4m in the same period 12 months ago.