Design and sourcing company Tarrant Apparel Group has reported a second-quarter net income of $0.9 million, on a 31 per cent sales increase during the period.

The net income compared to a net loss of $68.6m in the second quarter of 2004, which included a $78.0m million charge related to the impairment of certain of the company's Mexico assets.

Second-quarter net sales totalled $50.5m compared to $38.5m in the same period last year. The increase was driven primarily by the Private Brands business, which contributed $11.5m in the current period compared to $4.7m a year ago.

In addition, the company's Private Label business increased 15 per cent to $39m in the second quarter of 2005 compared to $33.8m last year

Barry Aved, president and chief executive officer of Tarrant Apparel Group, commented: "We are pleased with the progress we made in the second quarter. We continue to work aggressively to grow our Private Brands division, and made our first shipments of JS by Jessica Simpson late in June.

"We are using Private Brands as a product development and marketing model for new Private Label initiatives and have placed tests with several high volume retailers during the quarter."

Tarrant Apparel Group serves specialty retailers, mass merchants, national department stores, and branded wholesalers by designing, merchandising, contracting for the manufacture of, and selling casual and well-priced apparel for women, men, and children.