Citing increases in team sales and the company’s e-commerce divisions, Sport Chalet posted a 0.4% sales increase to $79.7 million from $79.4 million a year ago. The increase, however, was partially offset by a slight decrease in comparable store sales of 0.2%, a result of continuing macroeconomic weakness in the company's markets which provided no catalyst for improved sales.
Prior-year comps were down 14.7%.
Gross profit as a percent of sales increased to 28.3% compared to 26.4% for the prior-year first quarter. The increase was primarily a result of decreased rent expense from successful landlord negotiations as well as improved merchandise margins from better inventory management.
As a result of increased gross profit and reduced depreciation-partially offset by increased SG&A expenses-the net loss for the quarter ended June 27, 2010 was reduced to $1.9 million, or 14 cents per diluted share, compared to a net loss of $3.0 million, or 21 cents per diluted share, for the quarter ended June 28, 2009.
Company Chairman and CEO Craig Levra concluded
, “We continue to improve the efficiency of our business, while leveraging the factors that differentiate Sport Chalet in specialty retail. The trade areas in which our stores are located continue to suffer the most from the economic downturn; every indicator suggests that California, Arizona, and Nevada, where 98% of our stores are located, will continue to be the hardest hit.
“Our team sales division continues to deliver improved results, even as the state budget crisis in California, Arizona, and Nevada impacts school spending on athletics,” said Levra.
