Net revenues were $129.3 million, an increase of 5.5% compared with $122.6 million in the prior-year period.

The company has assumed control of its men's collection sportswear business and plans to commence shipments from spring 2008. This is expected to require approximately $7 million of normal operating costs, which are incremental in fiscal 2007, during which the company expects to record few, if any, revenues associated with the business. It expects to report net revenues of approximately $120 million for its second fiscal quarter.

The company also announced that it has appointed Marty Nealon as the divisional president of its full price retail stores and e-commerce businesses, effective immediately. She has been consulting with the company on strategic initiatives since last August.