Everlasts revenues increased 24% to $12.4 million for the first quarter from $10 million last year. Sporting goods revenues climbed 30% to a record $9 million, the third consecutive quarter of more than 30% year-over-year sales growth. On a conference call, management said contribution margin in boxing grew 50 bps to 13% and sporting goods gross margins improved 780 bps.
Driven by the strong sales and higher margins in boxing, Everlast saw operating earnings jump 53% in Q1, to $2.2 million from $1.5 million last year. However, net earnings declined to $734,000, or 17 cents a share, from $2.5 million, or 64 cents, because of a pre-tax gain of $2 million on the early extinguishment of preferred stock and prepayment of notes last year. Adjusted earnings rose 43%.