Everlast full year revenues up 20% with operating income up 55%
23 Feb '07
2 min read
Everlast Worldwide Inc announced its financial results for its fiscal fourth quarter and year ended December 31, 2006.
For the fourth quarter ended December 31, 2006, net revenues increased 32% to $18.7 million, as compared to $14.1 million in the same period in 2005. Net licensing revenues for the fourth quarter of 2006 were $3.3 million, versus $3.1 million last year.
As previously announced, licensing revenues were impacted by the Company's decision not to renew its previous footwear license, as well as an increase in licensing commissions resulting from the litigation settlement which required the Company to pay commissions to a former agent of Everlast during 2006.
These two factors negatively impacted licensing revenues in the fourth quarter by approximately $400,000. The increase in licensing revenue was driven by strong athletic lifestyle product sell-thrus in both South Korea and the U.K. and strong Hand-Exercise expansion and distribution worldwide.
Revenues from sporting goods for the fourth quarter were a record $15.4 million, up 40% from $11.0 million in the year-ago period. The increase resulted from new products, expanded distribution and continued strong demand for the Everlast brand during the holiday season.
Gross margin dollars increased 30% to $7.3 million in the fourth quarter. The company's gross margin percentage decreased slightly to 39.3% in the fourth quarter due to a shift in the sales mix of the comparatively lower-margined sporting goods business compared to the highly profitable licensing business.
marketing@alchempro.com
