Sport Chalet Moves to LossMonday, November 11, 2013
Sport Chalet Inc. reported a quarterly loss Monday driven by declining sales figures and the closure of three underperforming stores.
The La Cañada-Flintridge specialty sport retailer announced a net loss of $3 million (-21 cents a share) for the fiscal second quarter ended September 29, compared with a net income of $800,000 (5 cents) in the same quarter last year. Revenue fell 5 percent to $86.7 million.
Analysts on average expected earnings of 5 cents a share on revenue of $88 million, according to Thomson Financial Network.
Online sales increased 32.4 percent during the quarter. Sport Chalet has tried to revamp its online sales division by offering same-day office or home delivery and store pickup for online sales, as well as a redesign of its website.
Chief Executive Craig Levra remained optimistic that the fall and winter seasons would see positive financial results for the company.
“Our second quarter had a disappointing start, as sales trends were weak in July and August, but turned positive in September on a comparable basis,” he said in a statement. “Sales trends have continued to improve as we progressed into fall.”
Shares of Sport Chalet closed up 7 cents, or more than 5 percent, to $1.28 on the Nasdaq.