Business news : Sport Chalet's Q4 Comps Surge on Strong Team, Online Sales

Sport Chalet, Inc. reported year-to-year comparable store sales growth of 6.8 percent for the fourth quarter ended March 31, enabling it to post its first fiscal year of comp growth since 2007.

Sales increased $5.9 million, or 7.2 percent, to $87.8 million for the 13 weeks ended March 31, 2013 from $81.9 million for the 13 weeks ended April 1, 2012. The sales increase is primarily due to the comparable store sales increase, while sales for Team Sales Division and online increased 23.1 percent and 20.0 percent, respectively. The company attributed the comp store growth to incremental improvement in winter weather compared with 2012, when comp store sales declined 5.3 percent decrease in the same period of last year.

Gross profit increased 21.4 percent to $4.2 million, or 27.0 percent of sales compared with 23.9 percent in the year earlier quarter. The increase in gross profit is primarily the result of the sales increase as well as lower markdowns and increased winter rentals and repairs, which have higher margins.

 

Selling, general and administrative ("SG&A") expenses increased $2.4 million, or 11.5 percent, primarily due to increases of $0.8 million in labor, $0.3 million in advertising and $0.8 million in expenses related to the growth of the Team Sales Division, which include operational issues associated with the new computer systems. As a percent of sales, SG&A increased to 26.5 percent from 25.5 percent.

Net loss for the quarter ended March 31, 2013 decreased $1.5 million to $2.3 million, or $0.16 per diluted share, from a net loss of $3.8 million, or $0.27 per diluted share, for the quarter ended April 1, 2012.
Liquidity

On March 31, 2013, the company's bank credit facility had a borrowing capacity of $65.0 million, of which the Company utilized $49.9 million (including a letter of credit of $3.6 million) and had $14.4 million in availability compared to $15.6 million in availability for the same period ended last year. The amount of availability fluctuates due to seasonal changes in sales and inventory purchases throughout the year.

Sport Chalet, Inc. Consolidated Statements of Operations
	Fiscal year
	2013	2012	2011
	(in thousands, except per share amounts)
Net sales	$ 360,645	$ 349,883	$ 362,483
Cost of goods sold, buying and occupancy costs	261,405	254,510	260,131
Gross profit	99,240	95,373	102,352
Selling, general and administrative expenses	91,994	89,203	92,647
Depreciation and amortization	8,455	9,450	10,351
Loss from operations	(1,209)	(3,280)	(646)
Interest expense	2,124	1,790	2,366
Loss before income taxes	(3,333)	(5,070)	(3,012)
Income tax provision	2	2	3
Net loss	$ (3,335)	$ (5,072)	$ (3,015)
Loss per share:
Basic and diluted	$ (0.24)	$ (0.36)	$ (0.21)

Source Sport chalet through SportsOnesource