Despite a 2.8% gain in fiscal third quarter sales, Sport Supply Group reported earnings were down 8.5% to $3.2 million, or 25 cents a share, from $3.5 million, or 26 cents per share, in the year-ago period. Net sales for the quarter ended March 31 increased 2.8% to $65.5 million from the fiscal third quarter last year, which the company attributed to a decrease in catalog division sales. Gross margin saw a slight increase at 36.1% of sales, up 70 basis points from the prior-year period. SG&A expenses were $17.5 million up $1.5 million from fiscal Q3 last year.
Sporting goods equipment accounted for 63%, or $41.4 million, of total net sales, while soft goods (footwear and athletic apparel) accounted for 32%,or 20.8 million, of sales for the period. Gross profit as a percentage of sales for sporting goods was 41.8% and soft goods margins came 35.7% of sales.
In other news, Sport Supply capped the end of its third quarter by acquiring controlling interests in Coach’s Sports Corner and Greg Larson Sports, both for undisclosed amounts. Accordingly, Sport Supply acquired the two companies in an effort to increase its road presence and expand the company’s brand position.
As earlier reported (SEW_1012), the company has agreed to be acquired by affiliates of ONCAP Investment Partners II L.P., a unit of Canada’s Onex, for around $172 million.
