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Sport Chalet Q4, FY ’08 hit by softer macroeconomic conditions
Sport Chalet (Nasdaq: SPCHA and SPCHB) said soft macroeconomic conditions were partly to blame for a drop in sales and a net loss for the fourth quarter.
For the quarter ended March 30, sales decreased 1.1 percent to $96.8 million from $97.8 million for the fourth quarter of 2007. Seven new stores not included in same-store sales contributed $8.2 million in sales for the quarter, while same store-sales decreased 8.6 percent.
Sport Chalet said same-store sales were negatively impacted primarily by soft macroeconomic conditions and to a lesser extent by the company’s new store openings and competitors in certain markets.
Net loss for the fourth quarter of 2008 was $2.8 million, or $0.20 per diluted share, compared to a net income of $881,000, or $0.06 per diluted share, for the fourth quarter last year.
Gross profit as a percent of sales was 26.3 percent compared to 29.3 percent for the fourth quarter of last year. Increased rents and promotional expenses were faulted for the decrease, it said.
Selling, general and administrative expenses increased to 27.5 percent from 24.5 percent last year, reflecting higher expenses as the company’s newer stores ramp up as well as reduced leverage from lower same-store sales.
For the fiscal year, sales increased 3.7 percent to $402.5 million from $388.2 million for the prior year. Sales from 12 new stores not included in same-store sales contributed $32.3 million to total sales for fiscal 2008. Same-store sales decreased 4.5 percent for the year due to the particularly weak macroeconomic conditions in the majority of the company’s markets.
Net loss for fiscal 2008 was $3.4 million, or $0.24 per diluted share, including a non-cash impairment charge of $2.1 million recorded in the third quarter in relation to certain California stores. Excluding the non-cash impairment charge, net loss for fiscal 2008 was $2.1 million, or $0.15 per diluted share. This compares to net income of $7.1 million, or $0.49 per diluted share, for fiscal 2007.
Gross profit was 29.0 percent for the fiscal year compared to 30.9 percent in the same period last year. SG&A was 26.3 percent compared to 24.8 percent in the same period of fiscal 2007.
Amer Sports elects new board
At Amer Sports’ general meeting, members of its previous board were released from their positions and a new board elected. It is the parent company of Precor.
Felix Björklund, Ilkka Brotherus, Anssi Vanjoki and Pirjo Väliaho were re-elected, while Martin Burkhalter, Christian Fischer and Bruno Sälzer were appointed as new board members.
They will serve until the 2009 annual general meeting.
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