Apparel manufacturer Tefron Ltd has reported widened losses as a result of investment into its transition from an intimate apparel company into a diversified active wear, swimwear and intimate apparel company.

Net loss for the fourth quarter of 2004 totalled $4.1 million compared to a loss of $2.2m in the same quarter last year while fourth-quarter net sales were $44.6m compared to sales of $40.4m in the same quarter of 2003.

Net loss for 2004 totalled $6.9m compared to a net loss of $4.4m in 2003, while
full-year sales were $182.8m compared to $163.1m the year before.

Yos Shiran, Tefron's chief executive officer, said that the company believed the investment into its diversification made it "better positioned to compete in the marketplace".

Shiran added that the company was currently seeing a bigger demand for active wear and swimwear, and anticipates that 2005 will be "a breakthrough year in sales".

Tefron manufactures boutique-quality everyday seamless intimate apparel, active wear and swimwear  which is sold throughout the world by marketers as Victoria's Secret, Target, Warnaco/Calvin Klein, The Gap, Banana Republic, Mervyn's, Nike, Patagonia, Reebok and Adidas.