Collegiate Pacific posted sales increases in the second quarter as well as improved margins and flat expenses, but was forced to lower its annual guidance as the sales gains were not quite up to expectations.
According to Adam Blumenfeld, CEO, “top line growth from our team dealer group was weaker than expected. Sales growth in the team dealer group was effected by the delayed deliveries of basketball uniforms from a major cloth vendor during the quarter.”
On a conference call with analysts, Blumenfeld further disclosed that the catalog business was up 10%, which includes the Internet-based business that was up “75% to 100%.” The DOKS platform, or the team dealer group, saw sales growth of about 3%. Overall, fiscal second quarter net sales increased 6.4% to $49.4 million from $46.4 million for the same period last year.
Gross profit margins were up 255 basis points to 35.2% for the quarter from 32.6% for the same period in fiscal 2006. SG&A expenses were flat as a percentage of net sales at 34.9%.
Net income for the quarter was a loss of $871,000 compared to a loss of $971,000 last year. Fully diluted earnings per share was a loss of nine cents for the quarter compared to a loss of 10 cents last year.
Looking ahead, the company sees fiscal 2007 sales of approximately $235 million to $240 million with fully diluted EPS of approximately 45 cents to 55 cents per share. This estimate represents a 181% to 244% improvement over last years 16 cents earnings per diluted share, but is a reduction of 7 cents to 9 cents from earlier guidance of 52 cents to 64 cents per share. The new sales guidance is also down from earlier guidance of $240 million to $250 million for the full year.
