Everlast Worldwide, a manufacturer, marketer and licensor of sporting goods, apparel, footwear said that for the second quarter ended 30 June, loss per share was US$0.46 compared with earnings per diluted share of $0.10 in second quarter of 2006, due to merger costs.

During the second quarter of 2007, the company recorded a $4.2m pre-tax non-recurring merger related charge related to a merger agreement with Brands Holdings Limited, a private company limited by shares incorporated in England and Wales. This includes a $3.0m termination fee incurred as a result of the termination of the Hidary Group Acquisition merger agreement signed on 1 June 2007.

Net revenues increased 24% to $12.2m, compared to $9.8m in the same period in 2006, resulted from a 28% increase in sporting goods sales to a record $8.7m.

In the second quarter of 2007, the company's gross margin was 54.1%, compared with 45.7% in the second quarter a year ago.

Second quarter operating income grew 36% to $2.1m, or 17.5% of net revenues, versus the year-ago level of $1.6m, or 15.9% of net revenues. This increase was primarily driven by higher revenues and improved gross profit margins.

Seth Horowitz, chairman, president and CEO of Everlast Worldwide, said: "We continue to implement our Global Brand Integration, which is benefiting our entire business. We recently launched a US trade print media campaign centered around our new tag-line, "Greatness is Within" which also includes our refreshedEverlast logo and global company icon. This marketing message has been and will be communicated and tailored around our product deployment and targeted to capitalise on the growing consumer trends of product categories "Train, Compete, Live" within our sporting goods equipment, apparel and footwear product offerings.

"This strategy enables us to maximise the global positioning of our brand, utilising the strengths of training, competitive and athleisure and sportswear products that we have exhibited in select territories and select categories and now aimed to achieve on a global basis. We have recently implemented this strategy by partnering with major sporting goods stores across the US to build outEverlast concept and focus shops, including Dicks Sporting Goods stores, The Sports Authority stores and Big 5 Sporting Goods stores."