Fitness financials: Gaiam’s Q4 revenue up 17.6 percent, plus Nautilus, Foot Locker, Dick’s Sporting Goods

Gaiam’s Q4 revenue rose 17.6 percent, commercial division sale costing Nautilus $13.5 million in charges, Foot Locker returned to a Q4 profit, and analysts said they expect strong results from a Dick’s Sporting Goods report.
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Gaiam’s Q4 revenue up 17.6 percent

After streamlining its business during the last few quarters, Gaiam (Nasdaq: GAIA) said its fourth-quarter net revenue and operating income were the best ever since its inception. Gaiam is the parent of Spri Products, which it acquired in early 2008.

For the quarter ended Dec. 31, net revenue increased 17.6 percent to $87.6 million from $74.5 million last year. The company said the increase in net revenue was primarily due to 44.1-percent growth in the business segment, as well as strong growth in the solar segment.

Net income was $4.0 million, or $0.17 per share, compared to a net loss of $30.3 million, or a loss of $1.26 per share, during the same quarter last year.

Gross profit increased to $45.9 million, or 52.3 percent of net revenue, from $38.3 million, or 51.4 percent of net revenue, during the comparable quarter last year. It was boosted by higher media sales.

Selling and operating expenses decreased to $35.4 million, or 40.4 percent of net revenue, from $39.7 million, or 53.3 percent of net revenue, last year. Operating income increased to $6.7 million from a loss of $47.2 million during the same quarter of last year.

For FY ‘09, net revenue was up 8.3 percent to $278.5 million versus $257.2 million during 2008. Net income was $296,000, or $0.01 per share, compared to a net loss of $35.6 million, or $1.46 per share, last year. The prior year’s results included impairment charges related to goodwill and the acquisition of media libraries. Excluding these items, the company would have posted a loss of $2.0 million, or $0.08 per share, during 2008.

Also, the company’s board of directors declared an annual cash dividend of $0.15 per common share. It is payable in late April 2010 to shareholders of record on April 1.

Commercial division sale costing Nautilus $13.5 million in charges

Nautilus (NYSE: NLS) said it expects to incur charges of $13.5 million in connection with the sale of its commercial business division.

In a regulatory filing with the Securities and Exchange Commission, the company said it expected $4 million in cash charges and $9.5 million in noncash charges as a result of the divestiture.

Nautilus in late February said it would lease its Virginia manufacturing plant to Med-Fit Systems and sell certain assets within the plant to the company.

Foot Locker returns to Q4 profit

After working to cut costs and closing dozens of poorly performing locations, Foot Locker (NYSE: FL) swung into the black profit-wise for the fourth quarter.

It earned $23 million, or $0.14 per share, versus a loss of $125 million, or $0.81 per share, during the same period last year.

However, excluding one-time costs each year, Foot Locker's profit was $39 million, or $0.24 per this year. That compares to an adjusted profit of $39 million, or $0.25 per share, during the same time last year.

For the quarter ended Jan. 30, revenue increased less than 1 percent to $1.33 billion.

For the full year, Foot Locker earned $48 million, or $0.30 per share -- up from a net loss of $80 million, or $0.52 per share, last year.

The 2009 adjusted profit was $86 million, or $0.54 per share, down 18 percent from its 2008 adjusted profit of $105 million, or $0.67 per share.

For full year, sales decreased 7.3 percent to $4.85 billion.

Analysts expect strong results from Dick’s report

Buoyed by strong seasonal apparel sales as a result of a cold, snowy winter, as well as new revenue growth from expansion into the Pacific Northwest, analysts expect Dick’s Sporting Goods (NYSE: DKS) to achieve a profit of $0.55 a share on $1.29 billion in revenue. On the eve of its earnings release, numerous analysts are recommending buying or holding stock in the company.

The company has given investors reason to expect good news. In January, Dick’s reported an increase in sales expectations after the 2009 holiday season saw same-store sales grow about 2 percent after earlier expectations were for sales to decline.

Dick’s revised its earnings guidance for the fourth quarter to at least $0.54 per share, up from $0.41 to $0.46 per share the company previously estimated in November.

For fiscal year 2009, Sam Poser, a senior research analyst who follows the company for New York-based Sterne Agee, recommended to clients in a research note that they buy Dick’s stock. His price target is $26 a share.

“I think they’re going to have a pretty good quarter,” he wrote. “I think their same- store sales are going to be higher than most of the stores in the malls because consumers are shopping more for convenience.”

Poser expects Dick’s will see strong benefits from its expansion into the Pacific Northwest where it acquired the stores of a couple small region chains and has minimal competition. He also noted that the company should realize earnings growth in 2010 without renewed growth in still-weak consumer spending.

--Compiled by Wendy Geister

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