Upscale Line Brings Mossimo Lower

Still awash in red ink, Mossimo Inc. reported a first-quarter loss of nearly $1.7 million, or 11 cents a share, more than triple its loss from a year ago, as sales slumped 40%.

The Irvine-based clothing designer probably will not show a profit until 1999, but its turnaround plans are still on track, chief executive John Brincko said Friday.

“We’ve been meeting our internal objectives over the last three months,” he said.

The once soaring Mossimo has been struggling since it attempted to make the leap from beach and casual wear to more upscale apparel. Brincko, who was brought on board in March to help redirect the company, said Mossimo is zeroing in on casual clothing as it attempts to right itself.

“We really are looking to continue to strengthen our basic denim business and related sportswear as well as adding some fashion items that are complementary,” he said.

A year ago, the company posted a loss of $498,000, or 3 cents a share.

The company said sales for the first three months fell to $14.4 million from $24 million a year ago.

Mossimo’s stock closed Friday at $4.94, up 6 cents a share, on the New York Stock Exchange.