Everlast Worldwide Inc. reported net sales for its first quarter ended March 31, 2003 were $12,355,283 as compared to $15,734,596 reported in 2002. Net income available to common stockholders (after giving effect to the redeemable preferred stock dividend) was $15,878, or $0.01 per basic share, compared with $384,588, or $0.12 per basic share, in 2002.

“While recent geopolitical events, the economy and a particularly challenging retail environment impacted our sales volume this quarter, we are pleased to have reported positive operating results despite these challenges,” said George Q Horowitz, chairman and chief executive of Everlast Worldwide Inc. “We have recently taken steps to enhance our long-term profitability by reducing our internal operating and production costs, while remaining fully committed to building the Everlast brand. We continue to focus on opportunities to profitably extend the franchise through new product introductions such as the Everlast Urban men’s and women’s apparel line, our shoes and our new freestanding heavy bag. The strength of our brand continues to be demonstrated through our licensing efforts, as net licensing revenues advanced more than 19% this quarter to $1.6 million.”

Mr. Horowitz concluded, “While we are concerned about the current state of consumer confidence, the uncertainty over the economy and the continued difficulties facing the retail community, we will remain focused on our brand building efforts and merchandising programs as we seek to strengthen our relationship with both customers and retailers. We continue to see new opportunities emerge as consumers and retailers alike are demonstrating a preference for niche market brands such as Everlast and we are well positioned to capitalize on these trends. Our strategies for the balance of the year will be a continuation of those we put in place at the time we acquired Everlast. These call for further international expansion through our licensing programs and the introduction of new apparel and boxing products; all of which will be supported with aggressive advertising and merchandising campaigns. The achievement of profitable growth while enhancing shareholder value remain central to management’s strategic vision.”


                                                     Three Months Ended
                                                          March 31,
                                                      2003          2002
                                                 (Unaudited)   (Unaudited)
                                               (Consolidated) (Consolidated)

    Net sales                                    $12,355,283    $15,734,596
    Cost of goods sold                             8,920,042     10,637,256
    Gross profit                                   3,435,241      5,097,340
    Net license revenue                            1,648,838      1,384,667
                                                   5,084,079      6,482,007
    Operating expenses:
       Selling and shipping                        3,036,444      2,802,460
       General and administrative                  1,386,864      1,510,655
       Amortization                                  228,168        233,878
                                                   4,651,476      4,546,993

    Income from operations                           432,603      1,935,014
    Interest expense                                 236,912        151,102
    Investment income                                (12,647)        (6,611)
                                                     224,265        144,491

    Income before provision for income taxes         208,338      1,790,523
    Provision for income taxes                       175,360        846,540
    Net income                                       $32,978       $943,983