West Coast sports chain shows growth potential
LOS ANGELES — With just 54 stores located throughout California, Arizona, Nevada and Utah, Sport Chalet may not appear to be much of a threat to the bigger sporting goods players, but with growing sales, particularly online, the specialty chain could prove to be something to watch out for.
Sport Chalet, founded in 1959 by Norbert Olberz, is a leading, full service specialty sporting goods retailer with 54 stores in California, Arizona, Nevada and Utah; Sport Chalet online at www.sportchalet.com; and a Team Sales division. The Company offers over 50 specialty services for the sports enthusiast, including climbing, backcountry skiing, ski mountaineering, avalanche education, and mountain trekking instruction, car rack installation, snowboard and ski rental and repair, Scuba training and certification, Scuba boat charters, team sales, custom golf club fitting, racquet stringing, and bicycle tune-up and repair at its store locations.
Sport Chalet reported that sales for its first quarter ended July 1 increased 1.2% to $83.8 million from $82.8 million from the same period last year, thanks to a 2.9% increase in comparable-store sales. Online sales were up 7%.
Net income for the quarter ended July 1 increased $0.9 million to $0.1 million, or 1 cent per diluted share, compared with a net loss of $0.8 million, or $0.06 per diluted share, for the quarter ended July 3, 2011.
Craig Levra, chairman and CEO, stated, "We are happy with our first quarter results as we rebounded from the unseasonably warm and dry winter weather that significantly affected our sales and profitability in the third and fourth quarter of fiscal 2012. This quarter marked the first profitable first quarter in the past five fiscal years as we improved to net income of $0.1 million from a net loss of $0.8 million last year. This result validates our belief that the consistent improvements we have made to our business over the past few years have positioned us to return to profitability for fiscal 2013."
The company said it has promoted Danielle Dolloff to the newly created position of VP planning and logistics to lead its efforts for increased vendor collaboration.
As previously announced, the company currently plans to open a store in May 2013 in Downtown Los Angeles. The store will occupy 26,800 square feet of space.