The Forzani Group Ltd. said heavy competitor discounting in the August/September BTS selling period impacted sales for the period, forcing Canadas largest sporting goods retailer to revise its Q3 earnings forecast downward.
FGL reported that total retail system sales, which includes both corporate and franchise stores, were down 1.8% for the eight week period ended September 27. Total comparable stores sales were down 4.6% to $152.6 million.
Corporate store comps were down 5.2% for the period, while Franchise store comps inched up 1.4% for the two months.
Sales in August were said to be “lower than anticipated”, partially offset by a strong September that saw “sustained positive comparable sales for the entire month.”
Third quarter earnings are now expected to be in the 84 cents to 90 cents per share range, down significantly from previous guidance in the $1.02 to $1.10 per share range, and roughly even to the 86 cents per share achieved in Q3 last year.
Forzani CEO Bob Sartor said that the retailers back-half loaded promotional plans, which began in September, “should continue to stimulate sales for the balance of the year.”