Leading producer of women's sleepwear, leisurewear and loungewear, Movie Star Inc, on Wednesday posted a sharp drop in second quarter net sales to $15.3 million from $19.8m in the year-ago period. Second-quarter gross margin for the quarter ended December 31, 2001 dipped to 29.1 per cent from 29.5 per cent, while operating income was $886,000, compared to $705,000 in the previous year.