The Sports Authority, Inc. announced that it expects fourth quarter earnings from normal operations of $0.46 to $0.49 per diluted share versus the Company’s prior guidance of $0.50 to $0.53. The reduced view is expected to result in
earnings per diluted share of approximately $1.52 to $1.55 for the quarter.
Other elements that will contribute to the Q4 earnings include:
- A one-time non-cash tax benefit related to the reestablishment on the balance sheet of previously eliminated deferred tax assets. This benefit is expected to be approximately $1.14 per diluted share.
- An impairment charge in accordance with FASB Statement No. 144 of approximately $0.08 per diluted share.
“While comparable store sales in January are running essentially flat, soft consumer spending during the holiday selling season has resulted in a 4.5% same store sales decline for the fourth quarter to date. However, we have appropriately managed our inventory levels by adjusting merchandise purchases to this sales trend. Consequently, fourth quarter merchandise margins as well as year-end inventory and borrowing levels are expected to be in fine shape,” commented Marty Hanaka, Chairman and Chief Executive Officer.
The Company expects to announce financial results for the fourth quarter and fiscal year ending February 1, 2003 on or about March 12, 2003.