Leading producer of private label intimate apparel, Delta Galil Industries Ltd, on Wednesday reported a 16 per cent in second quarter net income to $3.2 million from the year-ago period despite a four cent slide in sales to $131.2m.

The Tel Aviv-based company, which produces apparel for brands such as Ralph Lauren, DKNY, Calvin Klein, Hugo Boss and Nike, said North America accounted for 52 per cent of total second quarter sales, Europe 41 per cent and Israel seven per cent.

Delta said its North American sales fell 11 per cent to $68.9m from $77.4m but said sales to its largest customer, UK retail giant Marks & Spencer, jumped 16 per cent to $41.6m and represented 32 per cent of its total sales.

Arnon Tiberg, Delta president and CEO, noted that in the second quarter Delta continued to increase its sales to Marks & Spencer. "As we finish the third quarter, we are anticipating an overall increase in sales compared to last year," he said.

"This being said, we are still seeing further decreases in sales to specialty and department stores, while sales to the US mass market and the European market will increase."

He added if the devaluation of the dollar versus the euro and the pound continues then there will be improved operating profitability in the second half of 2002.