Clothing maker Tarrant Apparel Group is back in the black after posting strong sales growth for both its American Rag CIE brand and private label lines.

For the three months to 30 September, net income was $1.6m, or $ 0.05 a share, compared to a loss of $25.4m, or $ 0.83 per share, in the same period last year.

Net sales rose 28% to $70.2m from $54.6m.

Private Brands sales were up 41% to $12.0m, with the increase coming mainly from an increase in sales of American Rag CIE brand to Macy's Merchandising Group. Private Label sales increased 26% to $58.2m.

For the nine month period, net income was $1.4m, or $0.05 per share, compared to a loss of $23.9m or $0.78 per share last time. Sales rose to $186.4m from $175.0m.

The company reiterated its outlook for 2007 full-year net revenue of $230m to $240m.