Gander Mountain shares fell 31% for the week to close at $12.86 on Friday after the company issued a revised outlook for the 2004 fiscal year. GMTN now sees pre-tax income for fiscal 2004 in the range of $8 million to $13 million, compared with the previous guidance of $16 million to $21 million. Gander posted pre-tax income of $1.5 million in fiscal 2003.

Part of the problem is a shortfall in the company’s comp store sales forecasts for the year. Gander had previously estimated that same-store sales would increase 3% to 5% for the year on top of an 11.5% increase in fiscal 2003. They are now forecasting that comps will be “slightly negative” for the year after YTD comps dipped 0.7%.

Total fiscal 2004 sales are now seen in the range between $640 million and $670 million, a 31% to 37% increase over $490 million in sales last year.

GMTN will report Q3 earnings this week and expects to post a 24% increase in third quarter revenues to approximately $178 million. Comp store sales for the period declined 7.5% in Q3 versus an increase of 12.5% in the third quarter last year.

Gander cited “unseasonably warm weather” that impacted sales of outerwear and footwear in the third period. They also said co-branded credit card promotions were not as effective in driving sales of high-ticket items as they did when introduced last year.

>>> Will the weather shift in November help?

Gander Mountain shares fell 31% for the week to close at $12.86 on Friday after the company issued a revised outlook for the 2004 fiscal year. GMTN now sees pre-tax income for fiscal 2004 in the range of $8 million to $13 million, compared with the previous guidance of $16 million to $21 million. Gander posted pre-tax income of $1.5 million in fiscal 2003.

Part of the problem is a shortfall in the company’s comp store sales forecasts for the year. Gander had previously estimated that same-store sales would increase 3% to 5% for the year on top of an 11.5% increase in fiscal 2003. They are now forecasting that comps will be “slightly negative” for the year.

Total fiscal 2004 sales are now seen in the range between $640 million and $670 million, a 31% to 37% increase over $490 million in sales last year.

GMTN will report Q3 earnings this week and expects to post a 24% increase in third quarter revenues to approximately $178 million. Comp store sales for the period declined 7.5% in Q3 versus an increase of 12.5% in the third quarter last year. YTD comps reportedly dipped 0.7%.

Gander cited “unseasonably warm weather” that impacted sales of outerwear and footwear in the third period. They also said co-branded credit card promotions were not as effective in driving sales of high-ticket items as they did when introduced last year.