Fitness financials: Forzani Group swings to adjusted Q1 profit

Forzani Group, Canada’s largest sporting goods retailer, rebounded to a first-quarter adjusted profit thanks to sales of Vancouver 2010 Winter Olympics licensed products and sales of spring categories.
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Forzani Group swings to adjusted Q1 profit

Sales of Vancouver 2010 Winter Olympics licensed products and spring categories allowed the Forzani Group (TSX: FGL), Canada’s largest sporting goods retailer, to rebound to a first-quarter adjusted profit from a loss.

Forzani posted a net loss of CDN $691,000 (USD $652,145), or CDN $0.02 (USD $0.018) a share, compared with a year-ago loss of CDN $1.1 million (USD $1.03 million), or CDN $0.04 (USD $0.03) a share.

Excluding one-time marketing costs and the higher stock-based compensation expense, the company said it earned CDN $0.07 (USD $0.06) a share in the latest quarter, compared with a loss of CDN $0.04 (USD $0.03) a share a year ago.

In addition to the boost from the Vancouver Olympics licensed apparel sales, the company said seasonable weather upped sales in all of its spring categories, such as outerwear, athletic clothing, footwear and hockey equipment.

Revenue grew 7 percent to CDN $328.9 million (USD $310.4 million) versus CDN $307.7 million (USD $290.3 million) last year. Same-store retail sales increased 9.8 percent. Gross margins edged up to 34.8 percent from 32.4 percent last year.

Also, the company declared a dividend of CDN $0.075 per Class "A" share, payable on August 2 to shareholders of record on July 19.

(Conversion of Canadian dollars into U.S. dollars is for information only, is not necessarily relative to earnings, and is based on the currency rate as of June 8.)

--Compiled by Wendy Geister

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