Sport Chalet, Inc. posted a strong fiscal first quarter due to the addition of new stores as well as strong comp store sales growth. Total sales increased 17.2% to $72.1 million from $61.5 million last year. SPCH has opened five new stores since fiscal Q1 last year and same-store sales increased 4.9%, which management said can be traced to strong performance in the footwear category compared to the same quarter last year.

Gross margin increased 60 basis points to 29.5% of sales from 28.9% in Q1 last year, primarily due to the increase in same store sales that reduced the need for markdowns. SG&A expenses increased slightly from 28.4% for last year’s quarter to 28.6% this year. This expense increase is primarily a result of increased litigation reserves and infrastructure consulting fees, partially offset by the efficiencies from the increase in same store sales and a gain from an insurance reimbursement for a store damaged in 2004. With the slight increase in SG&A covered by the increase in gross margin and the 17% sales jump, SPCH was able to post a 184% increase in net income to $389,000, or six cents per diluted share, versus $137,000, or two cents per diluted share, in Q1 last year.