The Forzani Group said favorable weather patterns are expected to outweigh the issues associated with the outbreak of the conflict in Iraq. FGL announced fiscal 2003 retail system sales, which represent both corporate and franchised stores, increased 20.2% to C$1.053 billion. Fourth quarter retail system sales increased 16.1% to C$362.5 million.
Revenue for fiscal 2003, which consists of corporate retail system sales and wholesale sales to franchisees, was c$923.8 million, a 21.8% increase over the previous year. Both the corporate and franchise businesses reported significant revenue growth.
Comparable store sales at corporate stores increased 4.9% and franchise store comps gained 11.5%.
Net earnings for the year were $30.5 million up 48%, with EPS increasing 32.9% to C$1.01 versus C$0.76 per share in the previous year. Fourth quarter EPS was up 15% to $0.46, but far short of the Thomson First Call estimate of $0.52.
Gross margin for the year increased 30 basis points over fiscal 2002 to 34.7%.
Looking ahead, comparable store sales from corporate stores for the first five weeks of the first quarter of fiscal 2004 decreased by 1.9% and franchise comparable store sales increased 17.6%.
Comparable store sales in corporate stores were negatively impacted as last year’s sales included strong Winter Olympic product. Sales in British Columbia continued to be adversely affected by poor weather.
FGL earnings guidance for fiscal 2004 is in the range of C$1.35 to C$1.45 per share.
Forzani, which operates under the Sport Chek, Coast Mountain Sports, Sport Mart, Sports Exports and Forzani’s banners, now has over 4.3 million square feet of retail selling space in Canada.
