Fitness financials: Forzani's FY '06 profit up despite warm winter, plus Everlast, Nike

Fitness financials: Forzani's FY '06 profit up despite warm winter. Everlast plans public offering of $33 million in stock. Nike Q3 profit rises.

Forzani's FY '06 profit up despite warm winter
Canada's Forzani Group (TSX: FGL.TO) said its full-year net income increased by two-and-a-half times to CDN $35.2 million (USD $30.4 million), or CDN $1.04 per share (USD $0.89), from CDN $13.8 million, or CDN $0.42 a share, despite mild weather in eastern Canada.

Annual sales grew 12 percent to CDN $1.26 billion (USD $1.08 billion), from CDN $1.13 billion. Same-store sales rose 5.4 percent.

Fourth-quarter revenue was CDN $353.2 million (USD $305.3 million), up 3 percent from CDN $342.2 million in the year-earlier period.

Total quarterly sales at corporate and franchised outlets -- which include Sport Chek; Coast Mountain Sports; Sport Mart; National Sports; Sports Experts; Intersport; Nevada Bob's Golf; Hockey Experts; and Fitness Source, the fitness specialty retailer in acquired in early 2006 -- edged up 0.5 percent to CDN $440.2 million (USD $380.5 million).

Comparable-store sales slipped 0.3 percent, including a 2.9 percent decline at franchised outlets, after a strong 8.3 percent overall same-store gain a year ago.

Quarterly net earnings rose to CDN $21.1 million (USD $18.2 million), or CDN $0.62 per share (USD $0.53), from CDN $17 million, or $0.51 per share.

Forzani's total store count at year's end was 270 corporate stores and 209 franchise locations totaling 479 from coast to coast, up 3 percent from 464 a year earlier.

The company said it plans to buy back up to 10 percent of its 33.7 million common shares this year. In a previous normal course issuer bid that expired last July, it bought back no shares.

(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 Mar. 23.)

Everlast plans public offering of $33 million in stock
Everlast Worldwide (Nasdaq: EVST) plans to offer $33 million worth of stock in an underwritten public offering.

Everlast said in an SEC filing that it plans to grant underwriters a 30-day option to purchase $4.95 million in additional common stock to cover overallotments. The company said it will use the proceeds to pay down credit expenses to Well Fargo Century Inc. and to make mortgage payments on a Missouri factory.

Piper Jaffray & Co. will serve as book-running manager for the offering.

Nike Q3 profit rises
Nike's (NYSE: NKE) third-quarter profit grew 8 percent, helped by higher sales in Europe and favorable currency exchange.

Net income for the quarter totaled $350.8 million, or $1.37 per share, versus $325.8 million, or $1.24 per share, during the same period last year.

Revenue grew 9 percent to $3.93 billion, up from $3.61 billion a year ago. Currency exchange rate changes helped revenue by 3 percent, it said.

Nike President and CEO Mark Parker said in a statement that a "mix of compelling product and premium consumer experiences" drove orders, which total $6 billion, including a 1 percent gain from currency exchange -- 9 percent higher than orders for the same period last year.

The company saw revenue growth around the globe. U.S. revenue grew 2 percent to $1.5 billion, European revenue rose 15 percent to $1.1 billion, Asia Pacific revenue increased 11 percent to $589.9 million, and sales from the Americas improved by 5 percent to $212.5 million.

This is Nike's first earnings report since it outlined a five-year growth plan to reach $23 billion in sales by 2011 and increase its retail presence

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