Authentic Fitness Posts $1.5-Million Profit

Authentic Fitness Corp., the Van Nuys-based maker of Speedo and White Stag athletic apparel, posted a profit of $1.5 million for its fiscal first quarter, in contrast to a loss of $45,000 a year earlier.

For the three months that ended Oct. 4, Authentic Fitness reported net revenue of $23.9 million, up 40% from $17.1 million in the same period a year ago. The company attributed the gain to a 115% sales increase in its White Stag/Skiwear Division and a smaller sales increase in its Speedo Division.

The company’s profit in its fiscal first quarter was largely the result of a 57% drop in interest expense, to $991,000 from $2.3 million a year earlier, because of the company’s initial public stock offering in June and refinancing of its debt. If the charges related to the company’s public offering are excluded, the company said its profit would have been 59% higher in its latest quarter compared with a year ago.

The company also announced plans to open its first Authentic Fitness retail store in Los Angeles by the end of November, offering a complete line of Speedo products.