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Company Expands and Extends Bank Credit Facility to 2018
Next Generation Store Opens in Downtown Los Angeles
Implements Operational Improvements
LOS ANGELES, Aug. 14, 2013 (GLOBE NEWSWIRE) -- Sport Chalet, Inc. (Nasdaq:SPCHA) (Nasdaq:SPCHB), a premier, full service specialty sporting goods retailer, today announced its financial results for the first quarter ended June 30, 2013.
First Quarter 2014 Results
Sales decreased 2.8% to $81.5 million for the first quarter of 2014 from $83.8 million in the same period last year. Sales were lower primarily due to a sales decrease of $1.1 million from the closure of two underperforming stores, a 31.0% sales decrease in its Team Sales Division from the departure of sales representatives, and a decrease in comparable store sales. The declines were offset by a 37.6% increase in online sales. The Company has hired new sales reps for Team Sales, and the Division's dedicated website has been delivering promising results following an upgrade implemented last quarter.
Comparable store sales decreased 0.7% for the first quarter ended June 30, 2013 compared to the same period of last year, reflecting a weaker-than-anticipated retail sales environment. In response, Sport Chalet increased its promotional activity to stimulate sales. The promotions had an impact on gross margin, which decreased to 26.3% from 27.9% in the first quarter of last year.
Selling, general and administrative expenses as a percent of sales increased to 26.5% from 24.7% in the first quarter of last year, primarily due to increases in advertising, investments to support the growth of the online business, and labor-related expenses.
The Company's net loss for the first quarter of 2014 was $2.8 million, or $0.20 per diluted share, compared to net income of $0.1 million, or $0.01 per diluted share, in the first quarter of last year.