Gander Mountain Reports Wider Loss In 2nd Quarter

ST. PAUL, Minn. (AP) — Gander Mountain Co. reported a loss for its fiscal second-quarter Tuesday, pulled down by increased expenses and discounts and markdowns related to exiting its boat and ATV categories.

The retailer of hunting and outdoor gear lost $7.3 million, or 30 cents per share, compared with $4.9 million, or 20 cents per share, during the same period a year ago.

Gander Mountain substantially completed its withdrawal from the boat, all-terrain-vehicle and power sports services categories during the quarter.

Selling, general and administrative expenses climbed to $68.5 million from $66.9 million on higher advertising expenses.

Sales dipped 2 percent to $248.4 million from $252.9 million for the period ended Aug. 1. Retail sales fell 1 percent to $210.8 million, while direct segment sales dropped 5 percent to $37.6 million.

Sales at stores open at least a year, known as same-store sales, slipped 2.4 percent. Same-store sales are a key indicator of retailer performance since they measure growth at existing stores rather than newly opened ones.

Gander Mountain has 116 stores in 23 states and three outlet stores.

In premarket trading, Gander Mountain fell 26 cents, or 4.6 percent, to $5.36.