Russell Exceeds Consensus EPS Estimates on Record First Quarter Sales

Russell Exceeds Consensus EPS Estimates on Record First Quarter
Sales
Reaffirms Sales and Earnings Guidance for 2005 


ATLANTA, April 28  /PRNewswire-FirstCall/ -- Russell Corporation (NYSE:RML)
today reported fiscal 2005 first quarter net sales of $313.2 million, a 24%
increase over the comparable period last year, that also sets a new sales
record for the first quarter.  The Company reported first quarter earnings of
$2.2 million, or $.07 per diluted share, versus earnings of $0.5 million, or
$.02 per diluted share, in first quarter 2004.

(Logo:  http://www.newscom.com/cgi-bin/prnh/20030630/RMLCORPLOGO )

Sales for the quarter ended April 3, 2005, reflect a 3% increase in the
Company's ongoing businesses, in addition to $54 million of incremental sales
for acquisitions owned for less than a year.  Excluding the impact of the
revenue associated with the Major League Baseball contract, which expired in
2004, company-wide organic sales were up 5% over a year ago.

In addition to a strong showing by Brooks, with sales up more than 30% over
their 2004 first quarter, sales increases were led by JERZEES, with particular
strength in the artwear channel.

"We are pleased that Brooks has made such a significant contribution and
exceeded our expectations for the quarter," said Jack Ward, chairman and CEO.
"We also were extremely pleased to have sales growth from our core businesses
in addition to our acquisitions," said Ward.  "Organic gains in the quarter
were led by JERZEES with activewear sales increases in the artwear channel in
the mid teens.  JERZEES also experienced nearly double digit growth in mass
retail."

Gross profit was $85.9 million, or a 27.4% gross margin, for the 2005 first
quarter versus a gross profit of $64.6 million, or a 25.7% gross margin, in the
prior year. Lower manufacturing costs and contributions from acquisitions
positively impacted gross profit during the quarter.

Selling, general and administrative expenses ("SG&A") for the 2005 first
quarter were $73.5 million, or 23.5% of net sales, versus last year's $56.5
million, or 22.4% of net sales in the comparable period last year.  SG&A
increased primarily due to the higher relative SG&A expenses associated with
recent acquisitions.  The first quarter of 2005 includes approximately $.02
cents per share in extra expenses associated with the compliance and testing of
Sarbanes-Oxley 404.

Outlook

"With our solid start to the year, we are reaffirming our 2005 fiscal year
guidance for sales and earnings.  We continue to expect sales to be in the
range of $1.50 billion to $1.52 billion versus $1.298 billion last year," said
Ward.  "Additionally, we are reaffirming our quarterly ongoing earnings
guidance issued earlier this year."

"We continue to see positive results from our expansion in all three categories
of the sporting goods business: sports apparel, sporting goods equipment and
performance footwear," added Ward.

"As we continue to develop new opportunities and expand programs within our
core brands, we believe our strategy to maximize our presence in the sporting
goods industry will drive continued sales and earnings increases beyond 2005. 
Our current sales outlook remains positive due to these efforts, and we are
confident that expected synergies from our acquisitions will lead to improved
levels of profitability longer term," Ward added.

Conference Call Information

Management will have a conference call today, April 28, 2005, at 8:30 a.m.
Eastern Time to discuss the first quarter results.  The call may be accessed at
[phone] (domestically), and [phone] (internationally), using
conference call ID number 5418817.  The call will also be simultaneously web
cast via the Investor Relations homepage of the Company's website at
http://www.russellcorp.com/ .  A replay of the call will be available through
the website for 30 days.  In addition, you can register through the above
referenced website if you would like to receive press releases, conference call
reminders and other notices.

About Russell Corporation

Russell Corporation is a leading branded athletic and sporting goods company
marketing athletic apparel, uniforms, footwear and equipment for a wide variety
of sports, outdoor and fitness activities.  The Company's major brands include
Russell Athletic(R), JERZEES(R), Spalding(R), Brooks(R), Huffy Sports(R),
Bike(R), Moving Comfort(R), and Mossy Oak(R).  The Company's common stock is
listed on the New York Stock Exchange under the symbol RML and its web site
address is http://www.russellcorp.com/ .

Forward Looking Statement

This Press Release includes "forward-looking" statements (as defined by the
Private Securities Litigation Reform Act of 1995 (the "Act")) that describe our
beliefs concerning future business conditions, prospects, growth opportunities,
and the outlook for the Company based upon currently available information. 
Wherever possible, we have identified these statements by words such as
"anticipate," "believe," "intend," "expect," "continue," "could," "may,"
"plan," "project," "predict," "will" and similar expressions.  We include such
statements because we believe it is important to communicate our future
expectations to our shareholders, and we therefore make such statements in
reliance upon the safe harbor provisions of the Act.  All statements other than
statements of historical fact are statements that could be deemed
forward-looking statements, including, but not limited to, any projections of
sales and quarterly earnings.  These forward-looking statements are based upon
assumptions that we believe are reasonable. Factors that could cause our actual
results to differ materially from those expressed or implied in such
forward-looking statements include, but are not limited to: (a) our mix of
products sold; (b) our strategy for developing new business opportunities and
expanded business programs; (c) risks related to the Brooks, Huffy Sports and
American Athletic acquisitions, our ability to realize synergies associated
with those acquisitions, and our overall acquisition strategy; and (d) other
risk factors listed in our reports filed with the Securities and Exchange
Commission from time to time. We undertake no obligation to revise the
forward-looking statements included in this Press Release to reflect any future
events or circumstances. Our actual results, performance or achievements could
differ materially from the results expressed or implied by any forward-looking
statements contained in this Press Release.

                             RUSSELL CORPORATION
                      Consolidated Statements of Income
          (Amounts in Thousands Except Share and Per Share Amounts)

                                               13 Weeks          13 Weeks
                                                 Ended             Ended
                                                4/03/05           4/04/04

  Net sales                                     $313,242          $251,793
  Cost of goods sold                             227,351           187,160
     Gross profit                                 85,891            64,633

  Selling, general and
   administrative expenses                        73,517            56,478
  Other (income) expense - net                      (546)              138
     Operating income                             12,920             8,017

  Interest expense, net                            8,889             7,187
  Non-controlling interests                          674                --

     Income before income taxes                    3,357               830

  Provision for income taxes                       1,175               299

      Net income                                  $2,182              $531

  Weighted-average common shares
   outstanding:
     Basic                                    32,856,924        32,546,574
     Diluted                                  33,195,681        32,834,510

  Net income per common share:
     Basic                                         $0.07             $0.02
     Diluted                                       $0.07             $0.02



                             RUSSELL CORPORATION
                         Consolidated Balance Sheets
          (Amounts in Thousands Except Share and Per Share Amounts)

                                           4/03/05     1/01/05     4/04/04
     ASSETS

  Current assets:
       Cash                                 $29,209     $29,816     $35,225
       Accounts receivable, net             241,179     212,063     178,415
       Inventories                          445,825     411,701     380,972
       Prepaid expenses and other
        current assets                       19,608      17,737      16,732
       Income tax receivable                 14,252       6,101      15,337

             Total current assets           750,073     677,418     626,681

  Property, plant & equipment, net          322,461     322,890     323,172

  Other assets                              252,260     253,801     129,880

             Total assets                $1,324,794  $1,254,109  $1,079,733


     LIABILITIES AND STOCKHOLDERS' EQUITY

  Current liabilities:
       Accounts payable                     $92,353     $94,642     $71,204
       Accrued expenses                      83,904      95,780      73,544
       Deferred income taxes                 14,223       4,054       5,562
       Short-term debt                       20,359      18,190       8,942
       Current maturities of long-term
        debt                                  6,990       6,938       6,850

             Total current liabilities      217,829     219,604     166,102

  Long-term debt, less current
   maturities                               438,901     372,921     319,294

  Deferred liabilities:
       Income taxes                          19,359      20,286       6,609
       Pension and other                     66,500      64,351      58,943

  Non-controlling interests                  14,742      14,096      12,075

  Commitments and contingencies                  --          --          --

  Stockholders' equity:
       Common stock, par value $.01 per
        share; authorized 150,000,000
        shares, issued 41,419,958 shares        414         414         414
       Paid-in capital                       40,206      40,716      38,552
       Retained earnings                    756,671     755,799     712,310
       Treasury stock, at cost             (198,169)   (201,171)   (206,802)
       Accumulated other comprehensive
        loss                                (31,659)    (32,907)    (27,764)
             Total stockholders' equity     567,463     562,851     516,710

             Total liabilities &
              stockholders' equity       $1,324,794  $1,254,109  $1,079,733



                             RUSSELL CORPORATION
                    Consolidated Statements of Cash Flows
                           (Amounts in Thousands)

                                                April 3,          April 4,
                                                  2005              2004
  Operating Activities:
       Net income                                 $2,182              $531
       Adjustments to reconcile net
        income to net cash used in
        operating activities:
                 Depreciation                     12,501            11,442
                 Amortization                        934               298
                 Earnings of non-controlling
                  interests                         (674)                -
                 Provision for deferred
                  income taxes                     8,178                 -
                 Other                             2,903                71
                 Changes in operating
                  assets & liabilities:
                      Trade accounts
                       receivable                (33,862)           (1,275)
                      Inventories                (35,048)          (31,078)
                      Prepaid expenses and
                       other current assets       (1,918)             (139)
                      Other assets                   167             3,855
                      Accounts payable and
                       accrued expenses          (11,175)           (9,279)
                      Income taxes                (8,079)             (798)
                      Pension and other
                       deferred liabilities        2,149              (922)
       Net cash used in operating
        activities                               (61,742)          (27,294)
  Investing Activities:
       Purchases of property, plant &
        equipment                                (12,002)           (3,241)
       Proceeds from the sale of
        property, plant & equipment
        and other assets                             114               502
       Net cash refund from (paid for)
        acquisitions, joint ventures
        and other                                  3,903            (1,965)
       Other                                         300             1,319
       Net cash used in investing
        activities                                (7,685)           (3,385)
  Financing Activities:
       Borrowings on credit facility
        and other - net                           64,610            37,645
       Borrowings on short-term debt               3,863               992
       Dividends on common stock                  (1,311)           (1,301)
       Treasury stock re-issued                    1,653               679
       Cost of common stock for
        treasury                                      (8)              (17)
       Net cash provided by financing
        activities                                68,807            37,998
  Effect of exchange rate changes on
   cash                                               13               (69)
       Net (decrease) increase in cash              (607)            7,250
  Increase in cash from consolidating
   Frontier Yarns, LLC                                 -             7,859
  Cash balance at beginning of period             29,816            20,116
  Cash balance at end of period                  $29,209           $35,225


http://www.newscom.com/cgi-bin/prnh/20030630/RMLCORPLOGO

http://photoarchive.ap.org/

DATASOURCE: Russell Corporation



CONTACT:  Financial, K. Roger Holliday, [phone], or Media, Nancy

Young, [phone], both of Russell Corporation



Web site:  http://www.russellcorp.com/ 

Copyright