Gander Mountain Co. reported sales climbed 18.2% to $207.7 million for the first quarter ended May 3, 2008. Comps decreased 6.7% in the first quarter. The 2008 period includes $19.7 million in direct marketing revenue due to the acquisition of Overton's in December 2007. Net loss for the first quarter was $24.4 million, or $1.02 per share, compared to a net loss of $22.8 million, or $1.14 per share, in the first quarter of fiscal 2007.
“As anticipated, first quarter results in our seasonally-smallest quarter reflect continuing economic pressure, both in the broad economy and particularly with the purchase of discretionary items. Overall, conditions eased in the first quarter of 2008 from late 2007 and our results were in line with our expectations,” said Mark Baker, president and CEO.
“We have taken a conservative approach to new store openings. We have completed our 2008 opening program while increasing our emphasis on southern stores,” said Baker. “In the second quarter of fiscal 2008, we expect to benefit from the positive impact of Overton's peak marine business. The combination of cost-saving initiatives, growth in direct marketing, fewer store openings and other strategic sales initiatives will position Gander Mountain for improved performance in fiscal 2008.”
Gross profit increased 24.1% to $42.0 million for the first quarter. As a percent of sales, gross profit increased 96 basis points to 20.2%, due primarily to improvement in business mix relating to higher margin direct sales. Selling, general and administrative expenses (SG&A) for the first quarter increased 14.1% to $59.0 million, driven by operational expenses related to Overton's. As a percentage of sales, SG&A decreased 100 basis points to 28.4% due to expense control.
