Outdoor financials: West Marine posts slight increase in Q3 same-store sales, plus Dick's, Cabela's, Amer, VF
West Marine posts slight increase in Q3 same-store sales, Dick's downgraded by analyst, Cabela's appoints new board member, Ajanta Oy's shares in Amer tips over 10 percent, and VF sells $600 million in 2-part notes.
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West Marine posts slight increase in Q3 same-store sales
West Marine’s (Nasdaq: WMAR) third-quarter same-store sales climbed 0.3 percent, in part on the company’s product assortment.
The company said increased same-store sales were from its “focus on assortment, customer service and in-stock levels.” It added that the Florida market continues to be weak, while electronic sales remain soft.
Port supply segment sales, which do not include sales to wholesale customers through store locations, slipped 4.8 percent in the quarter. Sales from the company’s stores segment dropped 4.2 percent on store closings. Sales in the direct sales segment fell 2.9 percent to $10.8 million.
Total sales for the period ended Sept. 29 fell 4.1 percent to $187.5 million from $195.6 million.
For the year to date, same-store sales are down 1.7 percent. Total sales are off 5.3 percent to $561.4 million from $592.8 million.
Dick’s downgraded by analyst
An analyst from Robert W. Baird & Co. downgraded shares of Dick’s Sporting Goods (NYSE: DKS) on a recent run-up in the stock price and warm weather that may hurt third-quarter results.
Analyst J. David Cumberland said shares of Dick’s have risen over 22 percent since the company’s strong second-quarter report. He downgraded the stock to “Neutral” from “Outperform.”
In August, Dick’s said second-quarter earnings rose 87 percent on higher sales from both existing and new stores. In a client note, Cumberland warned, however, that mild weather conditions hurt recent sales of cold weather merchandise for many retailers. He added that temperatures have been six degrees above average in Dick’s markets over the past four weeks, which may hurt third-quarter results.
In the long-term, Cumberland said the company will continue reporting strong earnings and sales growth because of its market leadership and strong execution.
Cabela’s appoints new board member
Cabela’s (NYSE: CAB) said John H. Edmondson has been appointed to its board of directors, bringing an extensive background in merchandising experience and a strong marketing.
Most recently, Edmondson was with West Marine, serving as CEO from December 1998 until December 2004. Prior to joining West Marine, he held executive leadership positions with leading companies in the retail industry over the span of his 40-year career. He currently serves on the boards of The Vitamin Shoppe and the U.S. Coast Guard Foundation.
Ajanta Oy’s shares in Amer tips over 10 percent
Amer Sports said it received information that Ajanta Oy’s holdings of the company exceed one-tenth of its share capital and voting rights via forward market transactions concluded on Oct. 12, 2007, maturing on Dec. 21, 2007.
Total holdings, after forward market transactions have matured on Dec. 21, will be 7,243,326 shares — 10.02 percent of the company’s share capital and voting rights.
Amer Sports capital consists of 72,318,750 issued shares.
VF sells $600 million in 2-part notes
VF Corp. (NYSE: VFC), parent of The North Face and JanSport, reportedly sold $600 million in two-part notes. The size of the deal was increased from an originally planned $500 million. Banc of America Securities and Citigroup Global Markets were the joint lead managers for the sale.
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