Children's footwear maker Stride Rite Corp has reported an 11 per cent drop in first quarter sales to $136.1 million, compared with $152.3m in the same period a year earlier.

The Massachusetts-based company also posted a drop in first quarter net income to $7.5m, down from $8.8m in the same period of fiscal 2003.

According to CEO David Chamberlain, weak sales of certain product lines were partly to blame for the "disappointing" results.

"The first quarter wholesale business was impacted by the bankruptcy of Footstar, reduced Munchkin product line sales and a decline in Tommy Hilfiger children's product sales," he said.

"Tommy Hilfiger had a disappointing first quarter in the men's business (as well).

"This, combined with a lower average selling price, due principally to a shift to beachwear from canvas and lower closeout product sales, created much of the shortfall."