Everlast Worldwide Inc. saw first quarter net revenues increase 20% to $10 million from $8.3 million in the same period in 2005. Growth in net revenue resulted from a 33% increase in sporting goods sales to a record $7 million, the second consecutive quarter of more than 30% year-over-year sales growth. Net licensing revenues for the first quarter of 2006 were $3 million, as compared to $3.1 million in the same period a year ago.
In the first quarter of 2006, the company's gross margin was 44.5%, compared with 48.1% in the first quarter a year ago. The lower gross profit margin was primarily due to a change in revenue mix driven by higher sporting goods sales, which have a lower gross margin than licensing. However, the company's sporting goods gross margins did improve 330 basis points.
Net income was $2.5 million, or 64 cents per diluted share, up from a net loss of $94,000, or 3 cents loss per diluted share last year.
