Gander Mountain no longer expects to meet the guidance given at the end of August when the company reported its second quarter sales and earnings. The company now expects that comparable store sales in the third quarter will decline 9% to 10% versus 2004. Previously, GMTN had forecast flat comp store sales with $850 million in revenue and pretax income of roughly $16 million.

Gander management said that the downward revision was due to “uncertainty about the economy” relating to higher energy prices and unfavorable weather. Total sales and gross margins were also said to be “disappointing” but the company is hoping for better business conditions during the primary hunting season and the holiday season, both of which take place in the fourth quarter.

The issues this year will cause GMTN to slow its store openings during 2006. The meteoric growth in square footage has been one of the primary sales drivers over the past several quarters. Analysts have also been concerned about slowing sales trends for hunting licenses and increased competition from other outdoor retailers. Gander management is hoping to realize more of the benefits of economies of scale as it surpasses the 100 store mark in 2006.


>>>Unlike Cabela’s and Bass Pro, Gander has no on-line component to fall back on when in-store traffic slows