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Russell Corp sales grows 10.5% in 2005, Q4 profit rises

16 Feb '06

3 min read

For the full year ended December 31st 2005, net sales increased $136.4 million to $1.435 billion, a 10.5 percent increase over the prior year's sales of $1.298 billion. Excluding the sales from acquisitions owned for less than a year, sales were $1.271 billion.

Jack Ward, Chairman and Chief Executive Officer, said, "As indicated earlier, we were disappointed in our 2005 financial results. Despite certain areas of our business having record performances, such as international apparel and Brooks, we did experience disappointing sales overall in our Sporting Goods segment. Unfilled orders earlier in the year contributed to weaker sales results for the balance of the year for Russell Athletic. Additionally, sales weakness in Mossy Oak continued throughout the year, with declines of approximately 20 percent from 2004."

Gross profit was $393.6 million, or a 27.4 percent gross margin as a percent of sales, for fiscal 2005 versus a gross profit of $363.9 million, or a 28.0 percent gross margin, in the prior year.

"We feel positive about our many growth opportunities and our cost reduction initiatives outlined in January. Russell's brands remain solidly positioned with our customers, and we continue to build on our reputation for quality, authenticity and performance, particularly with our primary brands, Spalding, Russell Athletic, Jerzees and Brooks," said Ward.

Russell expects sales for fiscal 2006 to be in the $1.450 to $1.480 billion range. As previously announced, it expects GAAP earnings per fully diluted share of $0.32 to $0.59, as charges associated with the previously announced restructuring are estimated to be in the $0.66 to $0.78 range for 2006. Excluding those charges, ongoing earnings are expected to be in the $1.10 to $1.25 range.

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