Sport Chalet, Inc. saw sales decrease 8.9% to $79.4 million for the first quarter of fiscal 2010 from $87.1 million a year ago. Comps tumbled 14.7%. The net loss was narrowed to $3.0 million, or 21 cents per share, compared to a loss of $4.5 million, or 32 cents, a year ago.
For the first quarter of fiscal 2010, the company achieved EBITDA of $1.1 million compared to the minimum requirement of a negative $1.2 million EBITDA contained in the company's current bank loan agreement. The $2.3 million achieved above the minimum EBITDA requirement in the first quarter of fiscal 2010 can be used to offset any future shortfalls during the remainder of fiscal 2010.
“We continue to closely manage our business as we navigate this challenging economic climate,” said Craig Levra, chairman and CEO of Sport Chalet. “We are pleased with the progress we have made to date with the initiatives implemented in the last year ”
Gross profit as a percent of sales increased to 26.4% for the first quarter of fiscal 2010 from 26.1% for the first quarter of fiscal 2009. SG&A expenses as a percent of sales decreased to 25.1% from 29.8% in the same period last year, primarily due to cost containment initiatives which resulted in savings of $7.1 million from decreases in salaries, advertising, professional fees, repairs and maintenance.
The company said the net loss for the first quarter of fiscal 2010 did not reflect any net tax benefit (because of tax valuation allowances), while the first quarter of fiscal 2009 reflected a net tax benefit of $3.0 million, or $0.21 per share. Without the tax benefit, the net loss for the first quarter of fiscal 2009 would have been $7.5 million.
