RUSSELL FORECAST: Russell Corp. said that disappointing sales and earnings at the Russell Athletic and licensed products divisions will result in a decline in first-quarter profits against a year ago.
In last year’s quarter, the company earned $13.4 million, or 33 cents a share, on sales of $232.1 million. In this year’s quarter, which runs through the end of March, Russell expects per-share earnings to be down 3 cents to 5 cents from the year-ago figures. The disappointing sales at the athletic and licensed products divisions will offset improvements in other areas, the company said, and limit overall sales growth in the period to 3 to 5 percent.
Tony Meyer, treasurer, said that business has been strong in knit activewear and that golfwear sales are ahead of plan. He added that the international group is up 40 percent and the fabrics business has also been good. For the rest of the year, the company said, the results should be more in line with analysts’ estimates.
Meyer said analysts are estimating earnings of $2.15 to $2.20 a share against $1.96 in 1994, when net income came to $78.8 million on sales of $1.1 billion.
ACTIVE BACKS KASTENBERG: Active Apparel Group will be a sponsor of Jeanette Kastenberg’s fall-winter ready-to-wear show April 6 at Bryant Park. Rita Cinque, vice president of Active Apparel, said, “We’ll be donating over $10,000 to Jeanette’s runway show.”
Cinque said Active Apparel will also provide about 1,000 free cotton T-shirts at the show. The sleeveless, multicolored screenprinted T-shirts — designed by Kastenberg — depict a blonde in HotPants, a bandeau and Everlast boxing gloves.
Active Apparel produces women’s licensed activewear under the Everlast and Converse labels.
“I’m really into sports, and the Everlast name to me has a feeling of long-lasting power,” Kastenberg said. “It’s all about power today, feminine power.”
GILDA’S NEW YORK DIGS: Gilda Marx Inc. has opened a new corporate showroom and offices at 1430 Broadway, New York, to make room for its new Trixi division of dual-purpose bodywear and activewear. The 3,500-square-foot space is 700 square feet larger than the former showroom, at 1411 Broadway.
The firm also maintains showrooms at regional merchandise marts in Dallas and Chicago, and at company headquarters in Los Angeles.
In addition to the Trixi line, each showroom features three other lines with the Gilda Marx label: fitness bodywear and casual activewear, children’s active looks and a line of daywear underwear.
Mitchell Guzik, president, described the new showroom as “more a visually stimulating and creative work atmosphere.”
The new space features lots of natural lighting, Bauhaus-style furnishings and marble floor treatments.