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Russell Corporation to revise QII results

14 Jul '05

3 min read

Furthermore, there was a strong, continuing shift to hooded sweatshirts which created additional overtime and training costs associated with this change. While taking aggressive actions to rectify these problems, management anticipates certain operational issues may not be completely resolved until later in the year.

Excluding the acquisitions made in 2004, the Sporting Goods segment experienced sales declines of approximately 13 percent versus the previous year.

Sales gains in Russell Athletic's base business were not able to offset the expected declines versus a year ago related to the absence of the Major League Baseball business and the discontinuance of a Discus branded program at retail.

Mossy Oak experienced significantly lower sales in the quarter, primarily due to a major shift in timing of fall shipments and also a reduction of a major, lower-priced program, as previously discussed.

Chairman and CEO Jack Ward said "We are disappointed in the quarter's results, which were impacted by several operational issues, including not being able to lower our overall costs for the quarter as planned. We believe these results are primarily due to short term execution problems, which we have already begun to address. We intend to re-examine every aspect of our businesses for further growth opportunities and cost reductions."

Ward concluded, "Despite these short-term disappointments, we continue to feel positive about our long-term strategic direction as outlined earlier this year."

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