Everlast Worldwide Inc. fiscal third quarter net revenues increased 27% to $13.4 million, as compared to $10.6 million in the same period in 2005. Net licensing revenues for the third quarter of 2006 were $3.0 million, as compared to $2.8 million in the same period a year ago. Revenues from sporting goods were $10.5 million, a record, as compared to $7.8 million in 2005, an increase of 35%.
Gross margin for the quarter improved 70 basis points to 42.7%, compared with 42.0% in the third quarter a year ago.
Net income improved 2.4% to $689,000 from $673,000 in the year-ago period, or 294% from $175,000 in the year-ago period when including a loss of $498,000 related to discontinued components of the business. The improvement was reflected in diluted earnings per share, which quadrupled to 16 cents from four cents in the year-ago quarter.
