Gander Mountain Company is reporting that it no longer expects to meet its previously disclosed guidance for revenue of at least $850 million, flat comparable store sales and pretax income of at least $16 million for the fiscal year 2005. The uncertainty about the economy, including the impact of higher energy prices, and the persistently warm weather across much of the country are contributing to weakness in sales. The company expects that comparable store sales in the third quarter will decline nine to ten percent versus the third quarter of fiscal 2004.
“Sales and gross margin in the third quarter have been disappointing,” said Mark Baker, president and CEO. “However, we still have our most important selling period ahead of us with the peak hunting seasons and the holiday season, and we have taken steps to maximize current opportunities in response to the softer sales environment.”
“Our new store opening plans for 2006 are more conservative in light of the economic uncertainty, which we believe has a greater impact on specialty retailers that rely on discretionary consumer spending,” continued Baker. “In 2006, as we surpass the 100-store mark, we expect to be in a position to realize more of the benefits of scale inherent in retailing and will focus on leveraging those opportunities for operating improvements.”
