Sport Chalet saw a turnaround in comp store sales in their fiscal Q3 ending Dec. 31, 2002, posting a 2.2% same-store sales gain in a very tough retail quarter. SPCH had reported a 2.3% decline in comps in their Q2.
Total net sales also increased, posting a 7.2% gain due in large part to the opening of two stores in late November. Q3 sales were $72.3 million versus $67.4 million for the three months ended Dec. 31, 2001.
Net income jumped 18.2% to $2.6 million, or 38 cents per diluted share versus $2.2 million, or 31 cents in 01.
“The entire team worked very hard to achieve the numbers”, quipped Craig Levra at the recent SIA show in Las Vegas. The improvement was attributed to higher gross margins due to better inventory management controls.
Gross profit for the quarter increased to 31.3% from 29.0%. A tight inventory management focus reduced the need for promotional pricing, producing a near 200 basis point improvement in merchandise margins.
SG&A increased to 25.3% of sales, primarily due to increased professional fees and sales incentives.
The average inventory per store decreased by 1.7% as compared to December 31, 2001.
KEY METRICS:
- Fiscal Q3 comps rise 2.2%
- Total Net Sales up 7.2%
- Net Income up 18.2%
- Inventory per store up 1.7%
- GM improved 200 bps
