Russell Corporation has reported fiscal 2005 second quarter earnings of $4.7 million on sales of $342.1 million, record sales for any second quarter.

The 18% gain in sales over last year's second quarter was led by increases associated with acquisitions, which generated more than $50 million in revenues. Operating income was $18.0 million in the quarter, down from last year's $23.9 million which included the one-time gain of $4.4 million associated with the sale of the company's position in Marmot Mountain, Ltd.

Sales in the activewear segment increased more than 10% percent and were particularly strong in the Artwear channel, which recorded sales increases of nearly 15%.

For the sporting goods segment, sales increases of nearly 30% were driven by the 2004 acquisitions of AAI, Huffy Sports and Brooks.

Mossy Oak experienced declines in revenue and profits for the quarter versus a year ago. Lower prices and the reduction of a major retail programme resulted in a revenue decline of more than 30% in the quarter.

Also in the sporting goods segment, increases in sales in the quarter for the Russell Athletic Group's base business only partially offset the absence of Major League Baseball and the discontinuance of the Discus brand at a major account.

"Given the expectations we had for the quarter, we are certainly disappointed with the results," said Jack Ward, chairman and CEO. "The good news is that there is solid consumer demand for our products and the major impacts experienced in the second quarter were primarily operational issues. We are rapidly addressing these issues, but we expect continued impact into the third quarter. We have already taken a number of steps to improve our cost position and further leverage our growth opportunities."