Gander Mountain Company retail sales gained 11.6% for the quarter, reflecting strong performance in firearms, ammunition, marine and camping. Comparable store sales grew 7.4% for the quarter. Excluding the -5.4% impact of boat and ATV sales and power sport services, which are categories the company is in the process of exiting, comparable store sales were a positive 12.8% during the quarter.
Fiscal 2009 first quarter consolidated sales were $227.7 million compared to consolidated sales of $207.7 million for the first quarter of fiscal 2008, a 9.6% increase.
Retail segment sales were $209.9 million, an increase of $21.9 million or 11.6%, as compared to the fiscal 2008 first quarter. Direct segment sales were $17.8 million for the quarter, compared to $19.7 million for the same quarter last year, a decrease of 9.6%.
Retail segment net loss was $16.4 million compared to a retail net loss of $22.8 million for the first quarter last year, an improvement of $6.4 million, or 28.3%. The improvement resulted primarily from sales gains, improved leverage in SG&A, and reduced interest expense.
Consolidated net loss was $18.6 million for the fiscal 2009 first quarter compared to a consolidated net loss of $24.4 million for the same quarter last year, an improvement of $5.8 million, or 23.7%. Consolidated results for the quarter include a net loss from the Direct segment of $2.3 million.
Comparable store sales during the first quarter of fiscal 2009 were 7.4%, an improvement over 0.2% drop in the fourth quarter of fiscal 2008. The firearms, ammunition, marine and camping categories all experienced strong sales performance during the quarter.
Improvement in inventory management resulted in a decrease in Retail segment inventory of 16.8% per square foot, year-over-year.
Consolidated SG&A costs, as a percentage of sales, declined 110 basis points to 27.3% of sales in the quarter.
At the end of the quarter, the company had total debt of $308 million, which is lower than the prior year by $39 million.
“Strong comparable sales performance in our retail segment allowed Gander Mountain to report continued operating improvement, even during the slowest seasonal period in the hunt-fish-camp categories and in a difficult retail environment. We continue to apply a more disciplined approach to our operations, capital, and expense decisions,” said David C. Pratt, chairman and interim CEO. “As expected, the 2009 retail environment remains challenging. We believe that our ongoing efforts to improve operating margins, manage costs and reduce debt will continue our momentum.”
Gander Mountain Company
Consolidated Statements of Operations – Unaudited
(In thousands, except per share data)
13 Weeks Ended
—————-
May 2, May 3,
2009 2008
—- —-
Sales $227,654 $207,662
Cost of goods sold 180,751 165,633
——- ——-
Gross profit 46,903 42,029
Operating expenses:
Selling, general and administrative expenses 62,127 58,957
Exit costs and related charges 285 776
Pre-opening expenses 299 1,627
— —–
Loss from operations (15,808) (19,331)
Interest expense, net 2,617 4,842
—– —–
Loss before income taxes (18,425) (24,173)
Income tax provision 220 272
— —
Net loss $(18,645) $(24,445)
======== ========
Basic and diluted loss per common share $(0.77) $(1.02)
Weighted average common shares outstanding 24,195 24,051
