Updated from 8:28 a.m. EDT

The Sports Authority ( TSA) said second-quarter earnings rose 22% over last year, matching analysts' estimates. The Fort Lauderdale, Fla.-based sporting goods retailer said margins improved despite relatively flat sales. The company predicted a wider-than-expected third-quarter loss but a better-than-expected fourth-quarter profit.

The company earned $9.3 million, or 27 cents a share, in the latest quarter, compared with $7.6 million, or 23 cents a share, in the same period last year.

Revenue in the latest quarter was $375.8 million, up from $370.8 million last year. CEO Marty Hanaka said Sports Authority experienced lower sales in April and late July, as well as higher administrative expenses due to higher payroll costs. The retailer also remodeled 12 stores and opened two new stores during the quarter.

The company expects to lose 15 cents to 17 cents a share for its third quarter and earn 50 cents to 53 cents for the fourth. Analysts polled from First Call predict a loss of 9 cents a share for the third quarter, and earnings of 46 cents for the fourth.

Separately, the company said its chief operating officer, James Tener, resigned to pursue other interests.

Shares closed down $1.53, or 17.73%, to $7.10 in trading Wednesday.

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