Tefron Ltd. — Interim / Quarterly Report 2007

Jul 5, 2007

SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16 of The Securities Exchange Act of 1934

For the month of July, 2007

TEFRON LTD.

(Translation of registrant's name into English)

Ind. Center Teradyon, P.O. Box 1365, Misgav 20179, Israel (Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F X Form 40-F _______

Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ______ No X__

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- N/A_

10171/1000/747283/2

Attached hereto and incorporated by reference herein is a press release dated the date hereof.

This Form 6-K is hereby incorporated by reference into Tefron Ltd.’s Registration Statement on Form F-3 (Registration No. 333-128847) and its Registration Statements on Form S-8 (Registration Nos. 333-139021 and 333-111932).

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

TEFRON LTD.

(Registrant)

By: /s/ Asaf Alperovitz______ Name: Asaf Alperovitz Title: Chief Financial Officer

By: /s/ Hanoch Zlotnik____ Name: Hanoch Zlotnik Title: Treasurer

Date: July 5, 2007

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Tefron Updates Expected Financial Results

Misgav, Israel, July 5, 2007 - Tefron Ltd. (NYSE: TFR ; TASE: TFRN) , a leading producer of seamless intimate apparel and engineered-for-performance (EFP[TM] ) activewear, today updated its expected financial results.

Tefron expects, based on preliminary data, second quarter revenues of approximately $40.5 million, representing an approximately 19% decrease from second quarter 2006 revenues of $49.7 million. The expected decrease is due mainly to lower than anticipated active-wear and intimate apparel sales. Tefron expects that third quarter revenues will further decline due to a delay in active-wear orders, as well as the seasonal reduction in sales of its swimwear product line.

Tefron expects its second and third quarter profitability to be impacted by the lower revenue and manufacturing levels expected during these quarters. In addition, and as management previously addressed in the Company's press release announcing its first quarter results, there are two other main factors reducing the Company's profitability. One factor is the devaluation of the US Dollar versus the New Israeli Shekel, and the second factor is price reductions in older collections of Tefron's intimate apparel product line. Due to these factors, Tefron expects its profitability in the second and third quarters of 2007 to be significantly below the profitability levels seen in the first quarter of 2007, and the comparable second and third quarters of 2006.

Tefron has received initial purchase orders for 'next generation' products from Nike for the third quarter. Tefron currently expects revenues to improve in the fourth quarter, mainly due to positive indications received from Nike for increased 'next generation' product orders in the fourth quarter, backed up by raw material commitments, and due to an expected growth in sales of our swimwear product line.

As a result of the above, Tefron now expects revenues for the year 2007 as a whole to be below those of 2006 and profitability to be significantly lower than that achieved in 2006.

Management comments

Mr. Yos Shiran, Chief Executive Officer of Tefron, commented, “The expected reduction in our second quarter and third quarter revenues has led us to lower our expectations for the remainder of the year. Despite this, we currently expect an improvement in sales in the fourth quarter mainly due to positive indications received from Nike and due to an expected growth in sales of our swimwear product line. Our working relationship with Nike is strong, and it remains a central part of our strategy driving our long-term growth in the active wear. We believe that our long-term business and market fundamentals

remain strong."

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About Tefron

Tefron manufactures boutique-quality everyday seamless intimate apparel, active wear and swim wear sold throughout the world by such name-brand marketers as Victoria's Secret, Nike, Target, The Gap, Banana Republic, J. C. Penney, Lululemon Athletica, Warnaco/Calvin Klein, Patagonia, Reebok and El Corte Englese, as well as other well known retailers and designer labels. The company's product line includes knitted briefs, bras, tank tops, boxers, leggings, crop, T-shirts, nightwear, bodysuits, swimwear, beach wear and active-wear.

This press release contains certain forward-looking statements, within the meaning of Section 27A of the US Securities Act of 1933, as amended, Section 21E of the US Securities Exchange Act of 1934, as amended, and the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995, with respect to the Company’s business, financial condition and results of operations. We have based these forward-looking statements on our current expectations and projections about future events.

Words such as "believe," "anticipate," "expect," "intend," "will," "plan," "could," "may," "project," "goal," "target," and similar expressions often identify forward-looking statements but are not the only way we identify these statements. Except for statements of historical fact contained herein, the matters set forth in this press release regarding our future performance, plans to increase revenues or margins and any statements regarding other future events or future

prospects are forward-looking statements.

These forward looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements, including, but not limited

• our customers’ continued purchase of our products in the same volumes or on the same terms;

• the cyclical nature of the clothing retail industry and the ongoing changes in fashion preferences;

• the competitive nature of the markets in which we operate, including the ability of our competitors to enter into and compete in the seamless market in which we operate;

• the potential adverse effect on our business resulting from our international operations, including increased custom duties and import quotas (e.g., in China, where we manufacture for our swimwear division);

• the potential adverse effect on our future operating efficiency resulting from our expansion into new product lines with more complicated products and different raw materials;

• the purchase of new equipment that may be necessary as a result of our expansion into new product lines;

• our dependence on our suppliers for our machinery and the maintenance of our machinery;

• • the fluctuations costs of raw materials;our dependence on subcontractors in connection with our manufacturing process;

• our failure to generate sufficient cash from our operations to pay our debt;

• fluctuations in inflation and currency; and

• political, economic, social, climatic risks, associated with international business and relating to operations in Israel;

as well as certain other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release

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any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events .

Contacts

Company Contact:

IR Contact:

G.K. Investor Relations

Ehud Helft / Kenny Green

Asaf Alperovitz Chief Financial Officer

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+972-4-9900803 646 201 9246

Aasaf@Tefron.com .1.1.1 info@gkir.com

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