Galyan's Trading Company, Inc. issued a warning on its results for fourth quarter and full fiscal year on Tuesday. GLYN now expects a comparable store sales decrease of approximately 4.7% for the fiscal fourth quarter.
In its November release announcing fiscal third quarter results, the company had stated that it expected comparable store sales in the fourth fiscal quarter to be in the flat to low single digit negative range.
The company will report full fiscal fourth quarter results on Thursday, March 18, 2004 and currently expects to report fourth quarter net sales of approximately $249 million and fully diluted earnings per share between $0.60 and $0.62.
As a result, the company anticipates reporting full year net sales of approximately $690 million, a comparable store sales decrease of approximately 5.9 percent and fully diluted earnings per share between $0.24 and $0.26.
The expectations for fiscal 2003 results are based on less than expected sales and continued markdowns in a highly promotional retail environment. Comparable store sales decreased from expectations primarily due to softness in the outdoor apparel and equipment categories. The earnings estimate includes a charge of approximately $0.07 per diluted share related to additional year-end markdowns to improve inventory freshness in the apparel and outdoor equipment categories, and a charge of $0.04 per diluted share related to a reserve against a capital loss carry forward that is not anticipated to be used before it expires in respect of an e-commerce investment written off in fiscal 2000.
Robert B. Mang, Chief Executive Officer and Chairman of the Company, commented, “We are disappointed with our sales and earnings performance in the fourth quarter of fiscal 2003 and have taken the appropriate actions to properly position our business as we enter the spring season of fiscal 2004.”
