Internet sales are expected to account for a third of total sales at The Sportsman’s Guide in 2003 after reaching the 30% mark in 2002. Web sales represented 21% of sales in 2001.

SGDE shares rose 1.0% for the week to close at 47.78 on Friday after the catalog and Internet retailer of outdoor gear posted a 43% profit gain for 2002. Net earnings for the year climbed to $4 million, or 80 cents per diluted share, beating analysts predictions by a penny. In 2001, The Sportsman’s Guide reported earnings of $2.8 million, or 58 cents per diluted share.

Net sales for 2002 rose 6.2% to $180.3 million, up from $169.7 million in 2001. Returns were 6.6% of sales for year vs. 7.6% in 2001.

Higher Internet sales also helped reduce SG&A expenses by 140 bps to 29.4% of sales. Gross profits dipped 40 bps due to increased promotional sales.

SGDE expects 2003 sales to approach $190 million and net earnings in the 85 cents to 88 cents EPS range.

The company is looking at potential catalog or Internet acquisitions in outdoor-related products. SGDE starts 2003 with zero debt and $17.2 million in cash.

KEY METRICS:

    FOURTH QUARTER

  • Net sales up 6.9% to $66.8 million
  • Net earnings down 21.2% to $2.6 million
  • EPS were 53 cents compared 68 cents per diluted share in Q4 2001