Everlast Worldwide posted the highest third quarter revenues for the company, riding a 13.5% increase in sales to $12.6 million from $11.1 million last year. Management attributed the sales gain to continuing apparel operations and sporting goods, which increased 14.0% to $9.8 million form $8.6 million last year. Net licensing revenues increased 12% to $2.8 million compared with $2.5 million in the prior period.
Net income, after $216,000 in costs associated with the discontinued women's business component, was $175,000, or 5 cents per basic share, as compared with a net loss of $249,000, or 8 cents per basic share in the corresponding 2004 period.
Everlast has been on a bit of a license signing spree, renewing, expanding, or creating licenses with at least eight different parties during the quarter, with product ranging anywhere from gym equipment to watches to school supplies.
Most recently, Everlast signed an agreement with Contrast APS, a Danish company who will introduce a series of Everlast-branded products to Denmark, Norway, Sweden, and Finland. As part of the agreement, Contrast will develop and sell Everlast sports bags, duffels, backpacks, sleeping bags, bed linens, beach towels, bean bag chairs, and back-to-school stationary items in the Scandinavian countries.
EVST shares jumped on the results, surging 76.4% for the week to close at $6.12 on Friday.
