ACTIVE APPAREL PROFITS UP 95.7% IN SECOND QUARTER
NEW YORK — Active Apparel Group Inc. cited growing acceptance of the Everlast brand as the catalyst for its 95.7 percent increase in second-quarter profits.
During the three months ended June 30, net earnings rose to $450,902, or 17 cents a share, from $230,460, or 9 cents, during the same period last year. Net sales for the quarter rose 45.8 percent to $8.2 million up from $5.6 million.
“Our ability to focus all of our marketing resources on the Everlast brand is continuing to pay off,” said George Horowitz, chairman and chief executive of AAG. This focus was achieved, in part, by infusing stores already carrying the Everlast brand with new products. New accounts such as Navy Exchange, Boscov’s and Just For Feet have also begun carrying the brand.
About a month before the quarter ended the Everlast Web site received a facelift that included a new flash home page, fresh product shots, a retail store locator on every page and a size chart. Although the company acknowledged the site is intended more for marketing than e-commerce, it experienced a 30 percent increase in sales in the month since its makeover.
The company generates about two-thirds of its sales in women’s wear and the remainder in men’s, but Horowitz said the gain in men’s, on a percentage basis, exceeded that of women’s apparel.