Sport Chalet pointed to “more seasonable” winter weather at the resorts frequented by their customers as well as an “improved economic climate” for a strong fourth quarter that finished off a turnaround year for the 31 store chain based outside Los Angeles. The retailer has made recent moves outside its base in Southern California and appears to be doing nicely in its newer Northern California and Nevada.

SPCH reported that sales for the fourth quarter ended March 31 increased 19.2% to $69.4 million from $58.2 million in the year-ago period. Comparable store sales increased 10.5% on the period, more than offsetting the 4.0% comp store sales decline in Q4 last year. Three new stores that opened in fiscal 2004 also helped boost the total sales number for the period.

Net income increased 516% to $328,000, or 5 cents per diluted share, in the fourth quarter from $53,000, or a penny per diluted share, in the year-ago period. SPCH attributed the gain to the sales increase along with a 180 basis point improvement in gross margin to 29.4% from 27.6% in Q4 last year. The issue of increased worker’ comp expenses, which appears to have an impact on most California companies’ results, were cited along with a effects of a stock award for the 130 basis point increase in SG&A expenses to 28.6% of sales.

This stock award, which resulted in additional compensation expense of approximately $800,000 or 7 cents per diluted share, had no significant effect on Sport Chalet’s cash flow.

SPCH plans to open five new stores and remodel four stores during the current fiscal year. The northward expansion includes one store in the East Bay and two more in the Sacramento area. The retailer will also move into the Central Valley with a store planned for Visalia. The new stores and planned remodels will make 44% of their stores three years old or less.

>>> Sounds like someone ought to keep an eye on these guys. With the right formula, an upscale big-box format is destined to do very well in NorCal, especially in the outdoor segment…

Sport Chalet pointed to “more seasonable” winter weather at the resorts frequented by their customers as well as an “improved economic climate” for a strong fourth quarter that finished off a turnaround year for the 31 store chain based outside Los Angeles. The retailer has made recent moves outside its base in Southern California and appears to be doing nicely in its newer Northern California and Nevada.

SPCH reported that sales for the fourth quarter ended March 31 increased 19.2% to $69.4 million from $58.2 million in the year-ago period. Comparable store sales increased 10.5% on the period, more than offsetting the 4.0% comp store sales decline in Q4 last year. Three new stores that opened in fiscal 2004 also helped boost the total sales number for the period.

Net income increased 516.0% to $328,000, or 5 cents per diluted share, in the fourth quarter from $53,000, or a penny per diluted share, in the year-ago period. SPCH attributed the gain to the sales increase along with a 180 basis point improvement in gross margin to 29.4% from 27.6% in Q4 last year. The issue of increased worker’ comp expenses, which appears to have an impact on most California companies’ results were cited along with a effects of a stock award for the 130 basis point increase in SG&A expenses to 28.6% of sales.

This stock award, which resulted in additional compensation expense of approximately $800,000 or 7 cents per diluted share, had no significant effect on Sport Chalet’s cash flow.

SPCH plans to open five new stores and remodel four stores during the current fiscal year. The northward expansion includes one store in the East Bay and two more in the Sacramento area. The retailer will also move into the Central Valley with a store planned for Visalia. The new stores and planned remodels will make 44% of their stores three years old or less.

>>> Sounds like someone ought to keep an eye on these guys. With the right formula, an upscale big-box format is destined to do very well in NorCal, especially in the outdoor segment…