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Russell Corp declares fully diluted earnings per share for Q3

19 Sep '05

3 min read

The evaluation and analysis of the ultimate financial impact of the catastrophe, as well as the eventual settlement with insurance carriers, will likely not be completed until 2006. The Company does expect to eventually recover a significant portion of these extra expenses from its insurance carriers.

Beyond 2005, Wal-Mart has indicated that the JERZEES brand of sweatshirts and sweatpants will be featured only in its Men's Department beginning in the second half of 2006. Previously, JERZEES had distribution for both the men's and boys' fleece programs at Wal-Mart and Russell currently expects to continue to be the exclusive supplier of the men's basic fleece program. The sales loss from the boys' program represents between 2 and 3 percent of the Company's total revenues. The impact of this decision is being evaluated, as are alternative operational plans for existing capacity.

Regarding the longer term, Ward said, "They continue to believe in our overall strategy to become a premier sporting goods company, as demonstrated by stable of consumer brands built on a heritage of quality athletic products. Short term, they must concentrate on better operational performance which has now been exacerbated by Katrina. They anticipate that 2006 will be a challenging year, but fully expect to have our operations running more smoothly next year."

Management plans to comment further on the impact of these recent developments as part of its regularly quarterly conference call scheduled for October 27, 2005, at 8:30 a.m. ET.

Atlanta based Russell Corporation is a leading branded athletic and sporting goods company marketing athletic apparel, uniforms, footwear and equipment for a wide variety of sports, outdoor and fitness activities. The Company's major brands include Russell Athletic, JERZEES, Spalding, Brooks, Huffy Sports, Bike, Moving Comfort, AAI and Mossy Oak.

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