Gross profit margin for the pre-acquisition businesses improved 100 basis points, driven by continued improvement in the Intimate Apparel Group's gross profit margins and increases in the Swimwear Group's gross profit margins.
The translation of foreign currencies, primarily as a result of a stronger euro and Canadian dollar, increased third quarter 2006 SG&A expenses by approximately $1.5 million compared to the third quarter of fiscal 2005.
Amortization of intangible assets increased to $2.7 million, compared to $1.2 million in the prior year period, primarily due to $1.5 million of amortization expense related to finite-lived intangible assets associated with the acquisition of the CKJEA Business.
Operating income for the third quarter of fiscal 2006 was $34.0 million compared to $17.0 million in the prior year period.
Other income was $4.4 million, compared to $0.1 million in the prior year quarter related primarily to realized and unrealized foreign exchange rate gains related to inter company loans denominated in foreign currencies.
Net interest expense increased to $9.3 million compared to $4.1 million in the prior year period. The $5.2 million increase is primarily the result of incremental indebtedness incurred in connection with the acquisition of the CKJEA Business.
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