"Although the fourth quarter was below plan, the overallprogress we made positions us for fiscal 2008 with a strongdetermination to improve our performance," CEO Craig Levra said,insisting that the company has "the right team and a solid plan inplace to drive Sport Chalet forward into the summer months" andbeyond.

Comparable sales dropped 1% in the final frame versus the sameperiod in FY 2006, but other financials favored the company,including an annual sales jump of 13.1% to $388.2 million, and a 2%gain for comparable sales that buttressed a 1.9% boost in the priorfiscal year. Net income was up by $7.1 million, amounting to 50cents per diluted share, even after declining from $1.6 million inQ4 2006 to $881,000 in this fiscal Q4.

Gross profits as a percentage of sales were unchanged in FY 2007at 30.9%, and SG&A expenses as a percent of sales were 27.8%versus 29.6% last year. Both indices were off in the final quarter,with gross profits falling from 30.2% to 29.3% and SG&A up to27.7% from 27%.