Sales at FGL Sports, formerly known as Forzani, reached $341.8 million in the first quarter ended March 31, up 5.6 percent from a year earlier on strong early sales of hard goods, apparel and footwear. Same-store sales at FGL, acquired by Canadian Tire Corp. in August 2011, grew 7.0 percent.
“Both corporate and franchise stores contributed to this strong sales performance, and momentum continues into the second quarter,” said Stephen Wetmore, Canadian Tire's president and CEO, on a conference call with analysts. FGL's corporate banners include Sport Chek, Sport Mart, Atmosphere, National Sports, Athletes World and Hockey Experts. Its franchised operations include Sports Experts, Intersport, Atmosphere, Nevada Bob's Golf, Hockey Experts, Fitness Source, S3, and The Tech Shop.
Wetmore noted that the cost synergies realized as part of the FGL integration is running at about $20 million currently with an expectation to meet the targeted $25 million this year. He added that the acquisition is in line with original expectations. Added Wetmore, ” Key to FGL's ongoing success, is maintaining healthy and mutually beneficial relationships with vendors, and making a strong connection with customers by offering them inspiration to lead healthier, more active lives.”
With a boost from the inclusion o FGL, companywide revenues climbed 26.5 percent to $2.18 billion. Consolidated net income increased 21.5 percent to $71.0 million, or 87 cents a share, reflecting strong growth in Financial Services, the inclusion of FGL and a lower tax rate. Comp sales at its Canadian Tire chain increased 3.3 percent 3.3 percent. Favorable weather in March drove strong sales in backyard living, cycling and gardening while promotional activity throughout the quarter supported growth in kitchen and household cleaning. The Automotive category continued to perform well with growth in auto maintenance, car care, and tires.
