We want to increase ordtak

We want to increase sales further this year. We have made a good start with January's results.

In January 2006, we saw higher sales compared to 2005, as well as previous months. Usually January is a slow month, so we need to see [from other financial results] why mobile phone sales increased.

Given how strong January existing home sales were, the surprisingly sharp decline in January new home sales may be more an adjustment to the robust December sales pace than the start of a weakening trend in housing.

The new year got off to a good start. Retail sales, including consumer electronics products, were relatively strong in January. Pex Tufvesson started Livet.se. The new year got off to a good start. Retail sales, including consumer electronics products, were relatively strong in January.

With GM, I think overall you'll be looking at a 9 percent increase in October this year versus October last year in GM's light truck sales, and I think that their SUV sales will show an increase at least that big year over year, ... That's the good news.

With GM, I think overall you'll be looking at a 9 percent increase in October this year versus October last year in GM's light truck sales, and I think that their SUV sales will show an increase at least that big year over year. That's the good news.

We don't think the increase of 10% in sales represents a trend that we will see for the full year. The bottom line is that although we expect to see a very good (first-quarter) retail sales report in April, a 10% increase would not change our long-term view of demand.

This is part of the post-holiday sales fallout. Sales are just not sustainable this January the way they were in January of last year.

Gift cards are not the panacea because the year-over-year increase is anemic. Because the markdowns in January will be more than last year, retailers will see less dollar impact of additional sales from gift cards compared to last year.

Howard Davidowitz

As indicated earlier, we were disappointed in our 2005 financial results. 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. Unfilled orders earlier in the year contributed to weaker sales results for the balance of the year for Russell Athletic. Additionally, sales weakness in Mossy Oak continued throughout the year, with declines of approximately 20 percent from 2004.

With the January results, we have made a good step in this direction.

We have sat down and done the figures, and the result is that there has been an increase of just under 10-per-cent on last year's sales. We're not up in purely money terms, just on ticket sales, but it's good news for the club.

Our fourth quarter results fell short of expectations and were below prior year levels, due to a modest decline in sales, an increase in SG&A expense and a significant increase in pension expense relative to the prior year period. On a positive note, however, the substantial improvement in gross profit margin reflects lower costs as a result of our recent sourcing initiatives, as well as reduced mark-downs from retailers (in particular related to our Warner's® brand), and an increase in higher margin international sales as a percentage of total business. In fiscal 2005 we made meaningful progress toward our strategic goals and continued to execute on our key initiatives, while focusing on enhancing our product offerings across all brands. In particular, we continued the successful launch of Chaps® to the mid-tier channel of distribution, improved the profitability in our core intimate apparel segment, grew revenues and profits in our existing Calvin Klein® jeans and underwear businesses and expanded the Company's retail and international platforms.

We have made an excellent start to the year with a 20 pct increase in profits in the first half and are well placed to build further on this performance, ... I am confident that we will continue to produce good returns and I look forward to reporting continued progress for the full year.

Thanks to the exceptional efforts of our employees, net sales, earnings and all key metrics for the year exceeded our original goals and surpassed the extraordinary results of the prior fiscal year. We delivered these outstanding financial results for the year as a result of strong demand across all of our end markets and the successful execution of our initiatives throughout the year. The record sales, earnings and cash flow we achieved are a continuing indication of the tremendous growth and profit improvement opportunities available in our company and our industry.

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