In its first-quarter report for fiscal 2001, the New York Stock Exchange-traded company posted a net profit of $6.4 million on revenue of $775 million. That's 55% under the $14.4 million in net income recorded in first quarter 2000 that ended April 30. Sales of $831 million were down 6.7%.

But it's still better than the $9.1 million loss the locally based firm logged in the fourth quarter of 2000 that ended Jan. 26, 2001. Fully diluted earnings per share in the current quarter were 27 cents, down 56% from 62 cents in first quarter 2000. Same-store sales decreased 3% for the period.

"Although sales and gross profit dollars were lower than last year's first quarter, earnings per share for this year's first quarter were in line with expectations," company chairman/CEO David H. Hughes says in a prepared statement.

The chairman blames 70% of the lower revenue to the sale of the firm's pool and spa business and to lower same-store sales (locations operating for at least a year) due to slower construction activity in several markets.

Still, Hughes says, "despite a disappointing top line, we were able to improve gross margin by 40 basis points, from 22.2% to 22.6% in a very competitive environment."