Clothing, footwear and linen company Pacific Brands has swung from a loss to a profit, despite a fall in its overall sales.
The company, which makes brands including Bonds, Hard Yakka, King Gee, Berlei, Clarks, Hush Puppies and Sheridan, made a net profit of $38.9 million in the six months to the end of December.
That is a huge turnaround from its $362.4 million loss during the same period in 2011.
Chief executive John Pollaers says underwear sales have been a standout, while its workwear labels have suffered from a downturn in market conditions.
"The clear operational highlight of the first-half result was the strong performance of Bonds and the broader underwear group," he said.
"It's only early days, but we're most encouraged by that performance. What it also shows is that good results can be obtained from strategic focus, discipline and investment in great brands."
Mr Pollaers says the company's focus on operating and financial discipline across the business has started to pay off.
"There are some encouraging signs, but further performance improvement is obviously required. We still have a way to go," he said.
"The good news is that we are getting increasingly clear on where the opportunities are and, more particularly, how we're going to realise them."
Pacific Brands shares had jumped 5.5 per cent to 77 cents by 10:23am (AEDT).