NEW YORK — It was a challenging year for Everlast Worldwide, which reported a sales decline and losses both for the fourth quarter and 2003 year.
The activewear company reported a loss of $1.2 million, or 38 cents a share, in the fourth quarter ended Dec. 31 against earnings of $1,200, or no cents, in the prior-year period. Results were hurt by restructuring and nonrecurring costs associated with the closing of its Bronx, N.Y., facility, the company said. On a pro forma basis excluding restructuring and nonrecurring costs, earnings were about $120,000 in the 2003 fourth quarter.
Sales fell 8.7 percent to $16.7 million, although the company said revenues suffered 3 percent because of the conversion of some of its customers to licensees during the year. On the plus side, the company’s licensing revenues gained 40.8 percent to $1.8 million in the quarter.
“While we achieved record licensing revenues, our results were impacted by various one-time costs and charges associated with our Bronx, N.Y., facility closure,” George Horowitz, chairman and chief executive officer of Everlast Worldwide, said in a statement. Nonetheless, Horowitz said he was optimistic about the company’s financial performance in 2004 due to new cost-saving measures, the introduction of the Heritage collection and the signing of new licensing agreements in the U.S. and international markets.