Full-line sporting goods and specialty sport retailers did not fare as well this year as far as profitability goes, according to the NSGAs Cost of Doing Business Survey.
The report, published every two years by the National Sporting Goods Association, indicated that Net Operating Profit and Return on Net Worth fell for full-line retailers. Return on Total Assets rose. Specialty sports shops slipped on all three key measurements.
For full-line sporting goods stores, Net Operating Profit was cut in half to 1.2% versus 2.4% compared to the 2001 survey. Return on Net Worth declined 110 basis points to 6.2% versus 7.3% in 2001 while Return on Total Assets jumped 200 basis points to 3.4% versus 1.4% in the 2001 survey.
For specialty sports shops, Net Operating Profit declined 130 basis points to 2.8% versus 4.1% in the 2001 survey. Return on Net Worth decreased 800 basis points to 11.9% versus 19.9% and Return on Total Assets fell by more than half to 4.4% versus 9.5% in 2001.
The silver lining to this dark cloud was gross margin, which climbed 280 basis points from 40.9% to 43.7%.