Outdoor financials: Wolverine signs credit deal, plus Forzani
Wolverine said it signed an agreement with JPMorgan Chase Bank NA for an initial revolving credit facility of up to $150 million, and Forzani Group rebounded to a first-quarter adjusted profit thanks to sales of Vancouver 2010 Winter Olympics licensed products and spring categories.
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Wolverine signs credit deal
Wolverine World Wide (NYSE: WWW) said it signed an agreement with JPMorgan Chase Bank NA for an initial revolving credit facility of up to $150 million. Wolverine is the parent of Merrell and licensee of Patagonia Footwear.
It said the agreement gives Wolverine the option to increase the credit limit up to $225 million.
The maturity date of the loans under the credit agreement is June 7, 2014. The deal replaces its credit agreement signed in July 2005.
Forzani Group swings to adjusted Q1 profit
Sales of Vancouver 2010 Winter Olympics licensed products and spring categories allowed the Forzani Group (TSX: FGL), Canada’s largest sporting goods retailer, to rebound to a first-quarter adjusted profit from a loss.
Forzani posted a net loss of CDN $691,000 (USD $652,145), or CDN $0.02 (USD $0.018) a share, compared with a year-ago loss of CDN $1.1 million (USD $1.03 million), or CDN $0.04 (USD $0.03) a share.
Excluding one-time marketing costs and the higher stock-based compensation expense, the company said it earned CDN $0.07 (USD $0.06) a share in the latest quarter, compared with a loss of CDN $0.04 (USD $0.03) a share a year ago.
In addition to the boost from the Vancouver Olympics licensed apparel sales, the company said seasonable weather upped sales in all of its spring categories, such as outerwear, athletic clothing, footwear and hockey equipment.
Revenue grew 7 percent to CDN $328.9 million (USD $310.4 million) versus CDN $307.7 million (USD $290.3 million) last year. Same-store retail sales increased 9.8 percent. Gross margins edged up to 34.8 percent from 32.4 percent last year.
Also, the company declared a dividend of CDN $0.075 per Class “A” share, payable on August 2 to shareholders of record on July 19.
(Conversion of Canadian dollars into U.S. dollars is for information only, is not necessarily relative to earnings, and is based on the currency rate as of June 8.)
–Compiled by Wendy Geister
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