NEW YORK — Preparing to emerge from bankruptcy as part of Jones Apparel Group, Kasper A.S.L. Ltd. on Monday belatedly reported a 75 percent drop in second-quarter profits.

Net income for the quarter ended June 28 fell to $1.5 million, or 22 cents a diluted share, versus $6 million, or 88 cents, a year ago. Revenues rose 27.1 percent to $91.3 million from $71.8 million.

The earnings results confirm statements made by the bankrupt firm in a regulatory filing with the Securities and Exchange Commission last week that second-quarter net income would fall between $1 million and $7 million. The filing informed the SEC there was a delay in the filing of Kasper’s quarterly report, or Form 10-K, because of required bankruptcy matters.

Excluding special charges and credits, income was $3.8 million for the quarter against a loss of $2.9 million last year, while revenue was $91.3 million versus $62.1 million.

As reported, the company restated results for the first half of last year. These included a $30.4 million charge for a cumulative effect of a change in accounting principles.

The company’s assets are in the process of being sold to Jones Apparel Group for $216.6 million in an auction approved by the court last week. The sale of the company will be implemented through an amended plan of reorganization, which is expected to be filed with the bankruptcy court by the end of this month.

John Idol, chairman and chief executive officer, said in a statement, “Despite a difficult retail environment and excluding the special charges and credits, we are pleased with the results for the second quarter and first half. We have maintained strong gross margins, have controlled expenses and have a strong balance sheet. As of June 28, 2003, we continue to have no borrowings under our [debtor-in-possession] financing agreement and have $13.4 million of cash on hand.”

Idol, in a telephone interview, said about the quarter’s financial improvements: “We had a lot of good things going on in all areas of the company during the quarter.”

Among the positive developments were better sell-throughs in the Anne Klein bridge and better lines; strong suit sales at retail and wholesale, and a strengthening in the firm’s outlet stores. In addition, there was a shift in sales from the first quarter into the second.While the Kasper brand received no advertising support in 2002, it will receive such support this year. Additionally, ad spending on the Anne Klein brand is expected to rise 20 to 25 percent this year versus a year ago.

For the six months, the firm reversed a year-ago loss. Net income was $9.5 million, or $1.40 a share, against a loss of $18.8 million, or $2.76, last year. Before the accounting charge, year-ago income was $11.7 million, or $1.71. Excluding special charges and credits, income was $12.4 million on revenues of $196.1 million, versus income of $3.8 million on revenues of $179.4 million last year.

Idol’s plans after the consummation of the acquisition by Jones aren’t yet known, but he’s indicated he won’t be letting up in his efforts to strengthen Kasper as long as he’s there. “We’re not going to take our foot off the accelerator at all in terms of driving our businesses,” he said.

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