Sport Chalet Q4 Sales Off 12.7%

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June 29 2009
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California based sporting goods chain Sport Chalet reported financial results for its fourth quarter and full year ended March 29, 2009. During Q4 of fiscal 2009, sales were off 12.7% to $84.5 million. The company attributed the drop mainly to the macro economic conditions and above average January temperatures in key markets which negatively impacted sales of winter sports products.

Here are some highlights from the release:

Fourth Quarter Results

Sales decreased 12.7% to $84.5 million for the fourth quarter of fiscal 2009 from $96.8 million for the fourth quarter of fiscal 2008. Four new stores not included in same store sales contributed $3.8 million in sales for the quarter while same store sales decreased 17.7%.

Net loss for the fourth quarter of fiscal 2009 was $11.1 million, or $0.79 per diluted share, compared to a net loss of $2.8 million, or $0.20 per diluted share, for the fourth quarter of fiscal 2008.

Full Year Results

For the fiscal year, sales decreased 7.4% to $372.7 million from $402.5 million for fiscal 2008. Sales from eleven new stores not included in same store sales contributed $16.2 million to total sales for fiscal 2009. Same store sales decreased 12.4% for the fiscal year due to the particularly weak macro economic conditions in the majority of the Company’s markets.

Net loss for fiscal 2009 was $52.2 million, or $3.70 per diluted share, including a non-cash impairment charge and income tax valuation allowance recorded in the third quarter, compared to a net loss of $3.4 million, or $0.24 per diluted share in fiscal 2008. Excluding the non-cash impairment charge and valuation allowance, net loss for fiscal 2009 was $35.6 million, or $2.53 per diluted share. This compares to a net loss of $2.1 million, or $0.15 per diluted share, in fiscal 2008, which excludes a non-cash impairment charge in the third quarter of fiscal 2008.

For a full discussion of Sport Chalet’s fiscal 2009 results, please refer to the Company’s Annual Report on Form 10-K which was filed today with the Securities and Exchange Commission.