Kellwood (KWD) swung to a second-quarter profit, but warned that third-quarter earnings will disappoint.

The St. Louis-based apparel marketer made $7.5 million, or 29 cents a share, from continuing operations for the quarter ended July 29. That reverses a year-ago continuing-operations loss of $6.9 million, or 25 cents a share. Sales fell to $474 million from $488 million a year earlier.

Analysts surveyed by Thomson Financial were looking for a 28-cent profit on $480 million in sales.

The company, which sells clothes under the Calvin Klein Women's Better Sportswear, Sag Harbor and O Oscar brands, said it expects to make 69 cents a share for the third quarter on sales of $520 million. Analysts were looking for a 76-cent profit on sales of $541 million.

"We are very pleased with the response from the retailers to the new Calvin Klein line and our order position for fall delivery," the company said. "Retailers are very supportive of the actions that we have taken in Sag Harbor to modernize our product and aggressively market the brand via our new Christie Brinkley association.

"However, there is a desire on their part to see fall sell through at retail of Sag Harbor before committing significant increases in their open to buy," Kellwood added. "As a result, while maintaining our earnings-per-share guidance of $1.75, which includes higher operating profit margins and levels of interest income, our operating earnings are now expected to be below our earlier guidance due to lower sales."