US-based apparel manufacturer Kellwood Co. is to sell its Smart Shirts segment to China-based Youngor Group Co. Ltd. for around $120 million in cash. The deal is expected to be completed by the end of fiscal 2007.

As a result it is expecting lower sales in the third quarter, which will most likely fall between $400 million and $415 million compared with its previous forecast of $520 million to $535 million. Annual sales are now expected range from $1.5 billion to $1.55 billion compared with prior expectations of $1.95 billion to $2 billion.

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