Galyan’s Trading Company, Inc. updated its guidance for its fiscal second quarter ending August 2, 2003. For the second quarter, the Company expects to generate sales in the range of $160 million to $164 million and fully diluted earnings per share in the range of ($0.03) to $0.01.
The Company also expects comparable store sales results to be in the range of negative eight percent to negative ten percent.
The Company expects to update its 2003 fiscal year guidance when second quarter actual results are reported on August 21, 2003.
This new guidance is predicated on previous expectations with respect to EITF 02-16 and inventory shrinkage. The impact of EITF 02-16 is expected to be a loss of approximately $0.02 per share on a fully diluted basis for the second quarter and is included in the Company’s guidance.
Robert B. Mang, Chief Executive Officer and Chairman of the Company, commenting on today’s announcement said, “The economy has continued to be challenging throughout the second quarter and the retail environment has been highly promotional. Also unfavorable weather, particularly in the Eastern U.S. and Midwest, has adversely impacted sales of water sports, swimwear, sandals and shorts. Overall, sales in casual apparel and footwear were particularly weak and were slightly offset by higher than expected sales in outerwear, hunting and bicycles. All of these factors have led to greater than anticipated markdowns in the second quarter, resulting in lower sales and gross margins. With our aggressive inventory management, we expect inventory levels on a per store basis to be below last year. In addition, we continued to exercise discipline by maintaining tight controls over discretionary and variable expenses.”
“Looking ahead, we anticipate the economy and the retail industry will continue to be challenging for the remainder of the year. Galyan’s will continue to control expenses and manage inventory, while offering our shoppers the unique shoppertainment experience they expect at our stores,” concluded Mang.
