News Flash

Apparel maker Russell post marginal rise in sales

29 Jul '05

5 min read

As demand has remained strong, Russell continues to anticipate that the Activewear segment will achieve strong sales and profit growth for the year, especially for the Company's market-leading men's fleece business.

"In the Sporting Goods segment, Brooks is having a strong year with continued sales gains planned for the second half as well," Ward added. "With ongoing improvements that are being made through the Spalding integration of Huffy Sports and AAI, they expect to continue building momentum into 2006." Russell Athletic also anticipates sales increases in the second half, based on the reception of new styles and expanded floor space at retail.

Ward continued, "With expectations for second half sales growth from existing businesses in the 4 to 6 percent range, they are maintaining our 2005 fiscal year sales forecast in the range of $1.500 billion to $1.520 billion versus $1.298 billion in 2004."

Based on the second quarter results, the Company is revising the forecasted range of earnings per diluted share for fiscal 2005. Excluding the 2004 one-time gain associated with the sale of the position in Marmot Mountain, Ltd., in 2004, revised expectations now include an increase in operating profits of 17 to 19 percent for the year. Fully diluted earnings per share on an ongoing basis are now forecast to be in the $1.40 to $1.48 range. In addition, the Company may take certain actions to improve organizational effectiveness and reduce administrative costs, which could result in special charges.

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