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LOS ANGELES, Aug. 8, 2012 (GLOBE NEWSWIRE) -- Sport Chalet, Inc. (Nasdaq:SPCHA) (Nasdaq:SPCHB), a leading operator of full-service, specialty sporting goods stores, today announced its financial results for the first quarter ended July 1, 2012.
First Quarter Summary
- Net income of $0.1 million compared to net loss of $0.8 million in the first quarter of the prior year;
- First quarter returns to profitability;
- Comparable store sales increased 2.9%;
- Team Sales division sales up 12.5%; and
- Online sales up 7.0%.
First Quarter Results
Sales increased $1.0 million, or 1.2%, to $83.8 million for the 13 weeks ended July 1, 2012 from $82.8 million for the 13 weeks ended July 3, 2011. The sales increase is primarily due to a 2.9% increase in comparable store sales, an improvement on top of the 2.3% increase in the same period last year. Team Sales division and online sales increased 12.5% and 7.0%, respectively. These sales increases were partially offset by a store closure which contributed $1.7 million in sales in the prior year.
Gross profit decreased $0.5 million, or 1.9%, and as a percent of sales decreased to 27.9% from 28.8%, primarily due to an increase in merchandise costs, changes in the product mix, and ongoing customer satisfaction initiatives implemented in August 2011.
Selling, general and administrative ("SG&A") expenses decreased $0.9 million, or 4.1%, primarily due to $0.8 million in savings from labor-related expenses. As a percent of sales, SG&A decreased to 24.7% from 26.1%.
Net income for the quarter ended July 1, 2012 increased $0.9 million to $0.1 million, or $0.01 per diluted share, compared to a net loss of $0.8 million, or $0.06 per diluted share, for the quarter ended July 3, 2011.
Craig Levra, Chairman and CEO, stated, "We are happy with our first quarter results as we rebounded from the unseasonably warm and dry winter weather that significantly affected our sales and profitability in the third and fourth quarter of fiscal 2012. This quarter marked the first profitable first quarter in the past five fiscal years as we improved to net income of $0.1 million from a net loss of $0.8 million last year. This result validates our belief that the consistent improvements we have made to our business over the past few years have positioned us to return to profitability for fiscal 2013."