Sporting goods retailer Sport Chalet's same store sales up of 5.7%

29 Jun '05

5 min read

Apparel, accessories & sports equipment retailer Sport Chalet Inc announced the results for its fiscal year ended March 31, 2005. Sales increased 17.0%, from $264.2 million last year to $309.1 million this year.

The increase is the result of opening five new stores this year and three last year, as well as a same store sales increase of 5.7%. The same store sales increase is due to better inventory assortments compared to the same period last year and increased customer traffic from the appeal of winter related merchandise.

Sales of winter related merchandise were driven by record winter weather conditions at the resorts frequented by our customers. Same store sales excluding winter related products increased 4.7%. Gross profit margin increased from 30.3% last year to 30.9% this year primarily due to a strong winter season, which reduced the need for markdowns as well as reduced costs from more efficient inbound logistics.

Selling, general and administrative expenses (“SG&A”), as a percentage of sales, increased slightly from 27.4% last year to 27.5% this year primarily from approximately $1.5 million in: (i) increased litigation reserves and (ii) professional fees primarily associated with the recapitalization plan announced today in a separate release. This increase was partially offset by a decrease in workers' compensation expense due to a significant reduction in claim activity resulting from the implementation of a new safety program. Net income increased $1.5 million, or 32.9%, from $4.6 million, or $0.66 per diluted share last year, to $6.2 million, or $0.88 per diluted share this year.

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