LOS ANGELES, CA (BRAIN) — Sport Chalet on Wednesday reported disappointing earnings for its fiscal third quarter, as the company’s net loss widened to $1.9 million from $1 million a year earlier.
Sales for the 13 weeks ended Dec. 30, 2012, ticked up 0.4 percent to $97.6 million, driven by a 17.6 percent increase in the Team Sales Division and online growth of 32.6 percent, but that was offset by a 0.7 percent increase in comparable store sales.
Chairman and CEO Craig Levra stated: “While this was a tough holiday season for many retailers, our third-quarter results were well below our expectations. Following a strong summer and fall, positive sales trends deteriorated significantly in November and for the first two weeks of December. Unseasonably warm and dry weather coming on top of a bad winter sports season last year, combined with our customers' general economic uncertainty and our desire to be less promotional all contributed to the decrease in comparable store sales.”
Sport Chalet’s fortunes appear to be rebounding in the company’s fiscal fourth quarter, however, with sales up 20.3 percent through the five weeks ended Feb. 3.
“We believe that the January sales numbers reflect both the return to more ‘normal’ winter weather conditions and the continued response of our customers to our strategy of being first to market with performance, technology and lifestyle merchandise as evidenced by our growth in average ticket size,” Levra said.
With 54 stores in Arizona, California, Nevada and Utah, Sport Chalet sells bikes from brands including Haro, Electra, Diamondback, KHS, Pure Fix and ASI’s Fuji and SE Bikes. The company’s stores also provide bicycle service and car rack installation.
