Performance Apparel Markets - Grado Zero Espace Srl

Performance Apparel Markets, 1st quarter 2006
Business update
In the Americas, overall
sales rose by 39% and in
Europe by 97%
Profits grew by a strong
31% to US$18.6 mn
Sales for 2006/07 are
likely to be US$2.25 bn-
US$2.27 bn
Russell’s results for 2005
were disappointing
Sales for the fourth
quarter rose by 6.2% to
US$354.6 mn
Sales for the whole of
2005 rose by 10.5% to
US$1,435 bn
But sales in Sporting
Goods were
disappointing overall
Net profits fell by 28%
to US$34.4 mn
Nevertheless, the
company is optimistic
about its future
For 2006 Russell expects
sales to be just under
US$1.5 bn
In geographical terms, overall sales in the Americas rose by 39% to
US$220.7 mn in the first quarter of 2005/06 compared with the
previous year. European sales rose by 97% to US$261.2 mn reflecting
the European bias of Rossignol. Sales in Asia Pacific rose by 16% to
US$58.3 mn.
Profits also increased strongly—by 31% to US$18.6 mn, from
US$14.2 mn in the first quarter in the previous year.
Quiksilver expects sales for its 2006/07 financial year to be in the
range of US$2.25 bn to US$2.27 bn.
RUSSELL CORPORATION
USA-based Russell Corporation, a manufacturer of athletic wear, has
reported disappointing results for the fourth quarter and for the whole
of 2005. The company’s financial year runs from January 1 to
December 31.
Sales for the fourth quarter, which ended on December 31, 2005, rose
by 6.2% to US$354.6 mn from US$334.0 mn in the same quarter of
2004. Fourth quarter sales for 2005 included US$27 mn sales from
Brooks, the only acquired business which Russell has owned for less
than one year 2 .
Sales for the whole of 2005 rose by 10.5% to US$1,435 bn from
US$1,298 bn in 2004. If sales from acquisitions owned for less than
a year are excluded, sales were US$1,271 bn in 2005.
Commenting on the results, Jack Ward, the chairman and chief
executive officer, said: “Despite certain areas of our business having
record performances, such as international apparel and Brooks, we did
experience disappointing sales overall in our Sporting Goods
segment.” Brooks is a performance footwear company.
The net profit for the 2005 financial year was US$34.4 mn compared
with US$47.9 mn in 2004. This figure represents a drop of 28%.
Despite the latest results, however, the company is optimistic about
the future. The benefits of Russell’s various initiatives for cost
reduction and lean manufacturing which were outlined earlier in 2006
are beginning to be felt.
For 2006, Russell expects sales to be in the range of US$1.45 bn to
US$1.48 bn. The first quarter, however, is expected to result in a loss
as approximately half the 2006 restructuring charges affect the quarter.
2 Sales for the fourth quarter of 2005 include sales generated by Brooks while those for the fourth quarter of
2004 do not. This is because Brooks was acquired in December 2004.
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