ACTIVE APPAREL NET BUOYED BY EVERLAST
NEW YORK — Escalating demand for its Everlast products propelled earnings for Active Apparel Group Inc., strongly ahead and its sales to record levels for the first quarter ended March 31, 2000.
In the quarter, net income for the marketer of women’s and men’s activewear hit $411,358 or 16 cents per share, a whopping 77 percent increase over the $232,706 or 9 cents a share reported for the prior-year quarter. Net sales were $8.0 million, a record high and 44.5 percent above the $5.5 million reported in the 1999 quarter.
Gross profit advanced 38.6 percent to $3.1 million from $2.3 million, and gross profit as a percentage of sales declined to 39.1 percent from 40.7 percent.
George Q. Horowitz, chairman and chief executive of Active Apparel, said in a statement that demand for both men’s and women’s Everlast products continues to accelerate beyond expectations. He also reiterated growth targets for the current year of a 30 percent growth in sales and doubling of earnings. “Based upon our results for the first quarter, we believe that we are well on our way to exceeding these goals,” he said.
Among the stores adding Active Apparel’s Everlast collections this year are Kohl’s, Galyan’s, City Sports, Casual Male and 24 Hour Fitness. Additionally, said Horowitz, more than 250 specialty stores were added to the company’s account list during the quarter.
The ceo gave much of the credit for the growing retail reach to “our aggressive and unique merchandising programs designed to build store traffic.” Horowitz added that for the balance of the year, the company will continue to make use of such merchandising programs to enhance Everlast’s brand awareness and strengthen ties with the retail community. Upcoming in-store events include the unveiling of five new Sports Authority units.
The company said it had entered into an agreement with New York’s Madison Square Garden for the development of co-branded product to coincide with special events such as the upcoming Grant-Lewis heavyweight championship boxing match. Such products will be sold at Madison Square Garden and available through MSG’s Web site.
Headquartered in New York City, Active Apparel Group is a designer, marketer and supplier of women’s and men’s activewear, sportswear and swimwear. The company sells its products under the Everlast brand name in addition to other licensed labels.
The products are produced by independent contractors and sold in some 20,000 retail locations throughout the U.S. and Canada.