Everlast Worldwide Inc. Reports Second Quarter Results
NEW YORK, Aug. 14 /PRNewswire-FirstCall/ -- Everlast(R) Worldwide Inc. (Nasdaq: EVST), manufacturer, marketer and licensor of sporting goods and apparel under the Everlast brand name, today reported operating results for its second quarter ended June 30, 2003.
For the quarter, net sales were $12.9 million as compared to $14.7 million reported in 2002. Net licensing revenues advanced 11.8% to $1.6 million. Net income available to common stockholders (after giving effect to the redeemable preferred stock dividend) was $.1 million, or $0.04 per basic share, compared with $.2 million, or $0.08 per basic share, in 2002.
For the six months ended June 30, 2003, net sales were $25.3 million as compared to $30.4 million in 2002. During the six months, net licensing increased 15.4% to $3.2 million. Net income available to common stockholders (after giving effect to the redeemable preferred stock dividend) was $.1 million, or $0.04 per basic share, compared with $.6 million, or $0.20 per basic share, in 2002.
"The challenges posed by the economy along with unfavorable weather conditions throughout most of the U.S. in the second quarter forced retailers to continue their cautious stance and thus, reduced orders. However, against this difficult backdrop, we posted positive operating results for the quarter," said George Q. Horowitz, Chairman and Chief Executive of Everlast Worldwide Inc. "During the quarter, we continued to enhance the Everlast brand and expand our product portfolio, develop new manufacturing efficiencies, and execute our long-term growth strategies."
Mr. Horowitz continued, "While the current environment has been challenging, we continue to see opportunities that will position the company for long-term profitable growth. This is evidenced by our recent new product development and new licensing activities particularly in the area of nutritional products, health and beauty aids for men and women, as well as consumer non-durables. We also expanded our presence in the important children's apparel segment through a number of licensing agreements. We are positioned to capitalize on consumer demand for niche market brands such as Everlast."
Mr. Horowitz concluded, "Regardless of what the balance of the year holds in terms of the economy, we remain committed to our brand building activities and product expansion efforts. Licensing the Everlast brand in important product categories will remain a corporate priority and we have identified a number of market segments, which hold great promise for us. Our flagship apparel line will be updated with new styles and products. The stature of our boxing brand will continue to grow as we unfold new event sponsorship activities in the coming months. We will also continue to support the Everlast brand name with unique and impactful advertising and merchandising efforts. We are now looking forward to leveraging the strategic progress we have made to deliver strong returns and enhanced value for our shareholders."
Everlast Web Site Updated
The Company also announced that it has recently updated its web site (www.everlast.com). Featuring Everlast's traditional black and yellow colors as well as the brand's distinctive logo, the updated site includes the Company's boxing endorsers, the history of the brand, product catalogues, among other items of interest. Said Mr. Horowitz, "We want to make it easy for our customers to interact with us and our updated site should achieve this goal as the new site is easy to navigate and incorporates many of the features our customers have suggested to us."
About Everlast Worldwide Inc.
Everlast Worldwide Inc. manufactures, markets and licenses sporting goods and apparel products under the Everlast brand name. Since 1910, Everlast has been the preeminent brand in the world of boxing and is among the most dominant brands in the overall sporting goods and apparel industries. Over the past 90 years, Everlast products have become the "Choice of Champions(TM)," having been used for training and professional fights by many of the biggest names in the sport. Everlast is the market leader in nearly all of its product categories, responsible for leading eight of the top ten boxing equipment products in sales. Through its apparel division, Everlast men's and women's active wear products are sold to over 20,000 retail locations throughout the United States and Canada, including a variety of department stores, specialty stores, catalog operations and better mass merchandisers. In addition to producing and marketing the equipment and accessories, Everlast Worldwide Inc. licenses its brand to providers of men's and women's sportswear and active wear, children's wear, footwear, watches, cardiovascular exercise equipment and gym/duffel bags. At the retail level, Everlast's licensed products generate over $500 million in revenues. The company's Web site can be found at everlast.com.
This release contains forward-looking statements that involve risks and uncertainties. The Company's actual results could differ materially from those anticipated in these forward-looking statements. Factors that may cause such differences include, but are not limited to, the Company's expansion into new markets, competition, technological advances and availability of managerial personnel. |
