MELBOURNE (Dow Jones)--Australian apparel manufacturer and retailer Pacific Brands Ltd. (PBG.AU) said Tuesday that the domestic retail market continues to be challenging, with consumer confidence remaining subdued in the first quarter of its fiscal year.

Speaking at the company's annual meeting in Melbourne, chief executive Paul Moore told shareholders that while management had anticipated this, he expected retail confidence to gain momentum over the year, though this would still be dependent on pre-Christmas trading.

He provided no financial forecasts for the year ending June 30, 2006.

Pacific Brands operates under four main divisions, primarily across Australia and New Zealand. Underwear and hosiery, the company's largest division, manufactures and markets underwear, intimate apparel, hosiery and socks under brands including Berlei, Bonds and Holeproof.

Outerwear and sport supplies workwear, sports clothes and equipment, including Malvern Star bicycles, Maxfli golf balls and King Gee clothing. Pacific's home comfort division markets mattresses and pillows including Sleepmaker and Tontine brands, and its footwear division is the largest supplier of shoes in Australia, including the Grosby and Julius Marlow brands.

Moore said Pacific Brands, "will focus on building our brands for the long term, with product extensions and innovation, a continued focus on branded sales and actively pursuing appropriate acquisition targets."

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