Gander Mountain Company reported consolidated sales for the third quarter ended Oct. 31 $276.6 million compared to consolidated sales of $269.9 million for the third quarter of fiscal 2008, a 2.5% increase.
Consolidated net income was $3.2 million for the fiscal 2009 third quarter compared to a consolidated net income of $0.8 million for the same quarter last year. Gander Mountain reported net earnings per share of 13 cents compared with 3 cents for the third quarter of fiscal 2008.
Retail segment sales for the third quarter were $261.0 million, an increase of $5.5 million or 2.2%, as compared to the fiscal 2008 third quarter. Direct segment sales were $15.6 million for the quarter, compared to $14.4 million for the same quarter last year, an increase of $1.2 million or 8.0%.
Comparable store sales during the third quarter of fiscal 2009 were a positive 1.0%. The firearms, ammunition, fishing, apparel, marine and camping categories all experienced above average comparable store sales gains during the quarter. During the second quarter of fiscal year 2009, Gander Mountain substantially completed its withdrawal from the boat, ATV and power sport services categories. Excluding the negative 2.7% impact of these categories, comparable store sales were a positive 3.7% during the third quarter.
Retail segment net income was $5.5 million compared to $3.7 million for the third quarter of last year. Net losses for the direct segment were $2.3 million for the quarter, compared with $2.9 million for the third quarter of last year.
For the 39 weeks ended Oct. 31, the company reported sales of $752.7 million, an increase of 3.0% over the same period in fiscal 2008. Comparable store sales for the 39-week fiscal 2009 period were a positive 1.8%. Excluding the negative 3.8% impact of boat and ATV sales and power sport services, comparable store sales were a positive 5.6% for the 39-week fiscal 2009 period.
Gander Mountain Company
Consolidated Statements of Operations – Unaudited
(In thousands, except per share data)
13 Weeks Ended 39 Weeks Ended
————– ————–
October 31, November 1,
2009 2008 2009 2008
—- —- —- —-
Sales $276,594 $269,920 $752,661 $730,455
Cost of goods sold 201,389 200,160 566,185 551,183
——- ——- ——- ——-
Gross profit 75,205 69,760 186,476 179,272
Operating expenses:
Selling, general and
administrative expenses 68,814 64,975 199,425 190,871
Exit costs and related
Charges 492 (1,112) 1,165 (20)
Pre-opening expenses – – 299 2,035
— — — —–
Income (loss) from
Operations 5,899 5,897 (14,413) (13,614)
Interest expense, net 2,579 4,950 7,807 14,301
—– —– —– ——
Income (loss) before
income taxes 3,320 947 (22,220) (27,915)
Income tax provision 151 182 591 619
— — — —
Net income (loss) $3,169 $765 $(22,811) $(28,534)
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Basic and diluted income
(loss) per common share $0.13 $0.03 $(0.94) $(1.18)
Weighted average common
shares outstanding 24,200 24,162 24,196 24,086
