Forzani narrows Q1 loss; shareholders vote on board nominees
Canadian sporting goods dealer Forzani Group (TSX: FGL) said it posted a smaller first-quarter loss as it dealt with weak consumer confidence. Its shareholders also voted all of Forzani's board candidates in.
For the quarter ended May 3, the company reported a loss of CDN $1.1 million (USD $991,447), or CDN 0.04 a share (USD $0.03), versus a loss of CDN $2.8 million (USD $2.5 million), or CDN 0.09 a share (USD $0.08), for the same period last year.
Revenue was flat at CDN $307.7 million (USD $277.3 million), compared with CDN $307.5 million (USD $277.1 million) in the year-before quarter.
Same-store sales rose 1 percent at corporate stores, but fell 2.8 percent at franchise locations.
Quarterly gross margin was 33.7 percent of revenue, compared with 34.3 percent a year earlier.
Also, Forzani said its shareholders have elected all eight of the company's nominees for the board of directors despite a proxy contest initiated by dissident New York hedge fund Crescendo Partners.
The company said it had 30.5 million shares eligible to vote. Based on preliminary information, approximately 28.0 million shares were voted, representing 92 percent of the eligible shares.
Earlier this year, the company said it planned to boost sales by 10 percent a year and earnings per share by 20 percent a year over the next five years as it reduces the number of retail chains it operates.
Forzani retail stores include Sport Chek, Fitness Source, Coast Mountain Sports and Sport Mart.
(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 10.)
Iconix offering generates $152.9 million
Iconix Brand Group (Nasdaq: ICON), parent of Danskin Fitness, said it closed its public offering of 11.5 million shares at $15 per share.
Net proceeds were about $152.9 million, which the company said it plans to use for general corporate purposes, including funding acquisitions.
The total number of shares sold included 1.5 million shares of common stock sold in connection with the full exercise of the option to purchase additional shares granted to the underwriters.
--Compiled by Wendy Geister
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