X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

ENGLEWOOD, CO-The Sports Authority Inc., the nation’s largest sporting good store retailer, reported net income in the second quarter of $14.2 million, or 53 cents per diluted share, compared with a net income of $6.8 million, or 26 cents per share in the second quarter of 2004. Last year’s figures included merger integration costs for the company that had been rapidly expanding through acquisitions and is based in this city southwest of Denver.

Excluding the effect of after-tax merger integration costs of $5.1 million, or 19 cents per diluted share, net income for the prior year’s second quarter was $11.9 million, or 45 cents per diluted share. Total sales for the second quarter were $617 million compared with $605 million in the prior year’s second quarter, an increase of $12 million, or 2%. Second quarter comparable store sales for the company increased 0.2%.

Net income for the 26 weeks ended July 30 was $22.2 million, or 83 cents per diluted share, compared with net income of $10.9 million, or 41 cents per diluted share, including merger integration costs, in the prior year’s comparable period. Excluding the effect of after-tax merger integration costs of $10.4 million, or 39 cents per diluted share, net income for the prior year’s 26 weeks was $21.3 million, or 80 cents per diluted share. Total during the same time period were $1.21 billion compared with $1.18 billion in the prior year’s comparable period, an increase of $31.2 million, or 2.7%. Comparable store sales increased 1%. The company opened one store and closed two stores during the second quarter to arrive at a total number of stores in operation as of July 30, 2005 of 392 stores in 45 states.

“We exceeded earnings expectations for the second quarter driven by improvements in gross margin and effective management of our operating expenses,” says Doug Morton, CEO of the chain. “We were pleased with the sales performance of several key categories including active apparel and fitness, however, the impact on our top line performance was greater than expected due to our decision not to repeat certain promotional events.”

For the third quarter of fiscal 2005, Sports Authority is forecasting a comparable store sales increase of approximately 1% to 2%, total sales of approximately $565 million and diluted EPS of 9 cents, based on 26.8 million diluted shares outstanding in the quarter. The company expects to open five new stores and relocate two stores during the third fiscal quarter.

For fiscal year 2005, the company is forecasting comparable store sales to increase approximately 1.5%. The company also stated that it is raising its fiscal year 2005 diluted EPS guidance to $1.96 to $2.01, based on an estimated 26.7 million diluted shares outstanding, compared to its previous guidance of $1.90 to $1.97. The company expects to open approximately 13 stores, relocate four stores and close seven stores during the year.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.