Everlast Worldwide reported net sales were $14.1 million, representing an increase of $1.7 million, or 14% over the 2003 corresponding period. Net licensing revenues increased 26% to $2.1 million. Combined, net revenues were $16.2 million representing an increase of 16%, or $2.2 million over the 2003 period. For the quarter, the Company achieved operating income of $1 million, an increase of 131%, while EBITDA increased to $1.4 million, representing a 77% increase over the 2003 comparable period. Net income available to common stockholders was $188,000, $0.06 per basic share, as compared to $16,000, $0.01 per basic share, in 2003.

“As you can see from these first quarter results, our balance sheet and results of operations are displaying the benefits from the initiatives we took in 2003 and early 2004, which include the Bronx, New York facility closure, the preferred stock redemption refinance, the signing of new and exciting licensing deals, along with the progress of our brand building strategy which facilitated our strong operating results and double digit increases in sales of our apparel and sporting goods businesses,” said George Q Horowitz, Chairman and Chief Executive of Everlast Worldwide Inc.

Mr. Horowitz concluded, “After reporting very solid first quarter 2004 results, I am optimistic about the remainder of 2004. I expect revenues for our licensing and apparel businesses to continue to grow and that our company will continue to benefit from the cost containment initiatives resulting from our sporting goods manufacturing facility consolidation. We will remain focused on developing new merchandising and marketing strategies to further increase brand awareness.”



Three Months Ended
March 31,
2004 2003
(Unaudited) (Unaudited)

Net sales $14,095,093 $12,355,283
Net license revenues 2,076,217 1,648,838
Net revenues 16,171,310 14,004,121

Cost of goods sold 10,698,362 8,920,042

Gross profit 5,472,948 5,084,079

Operating expenses:
Selling and shipping 2,506,547 3,036,444
General and administrative 1,737,641 1,386,864
Amortization 228,168 228,168
4,472,356 4,651,476

Income from operations 1,000,592 432,603

Other income (expense):
Interest and financing costs (393,732) (236,912)
Interest expense on redeemable
participating preferred stock (150,112) --
Investment income 4,284 12,347
(539,434) (224,565)

Income before provision for income 461,032 208,038

Provision for income taxes 273,337 175,360

Net income $187,695 $32,678

Redeemable preferred stock dividend -- 17,100

Net income available to common
stockholders $187,695 $15,578

Basic earnings per share $0.06 $0.01

Supplementary Information:
EBITDA (Earnings before interest,
taxes, depreciation and amortization) $1,419,391 $803,358