Forzani’s Q3 profit jumps 71 percent
Forzani Group (TSX: FGL) reported a 71-percent rise in third-quarter profit as good weather through late September and October drove customers into its stores. Its retail banners include Sport Chek, Coast Mountain Sports, Atmosphere and Fitness Source.
But the company added that its overall fourth-quarter results would be challenging as sales in the first five weeks of the period were hindered by unseasonably warm weather across much of the country and by continuing consumer caution.
Same-store sales for the first five weeks of the fourth quarter declined 8.6 percent for corporate locations, the company said.
For the third quarter ended Nov. 1, it reported net earnings of CDN $11.4 million (USD $10.7 million), or CDN $0.37 a share (USD $0.34), compared with CDN $6.6 million (USD $6.2 million), or $0.22 cents a share (USD $0.20), a year earlier.
Revenue rose 5 percent to CDN $381.1 million (USD $359.2 million) versus CDN 362.8 million (USD $342.0 million) last year. Same-store sales rose 2.3 percent.
Gross profit was CDN $131.0 million (USD $123.5 million), up 8.3 percent from CDN $120.9 million (USD $113.9 million) a year earlier, and gross margin was 34.4 percent of revenue compared with 33.3 percent of revenue a year earlier.
The company also declared a dividend of $0.075 per Class A share, payable on Feb. 1, 2010, to shareholders of record on Jan. 18, 2010.
(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 Dec. 10.)
Duofold parent refinances loans to pay off some debt
Hanesbrands (NYSE: HBI), parent of Duofold, said it has completed a debt refinancing that allows it more financial flexibility to consider acquisitions.
The company used the proceeds of a $500 million notes offering and funds from its $1.15 billion credit facilities to repay other debt. The company said its goal is to reduce debt by $300 million in both 2009 and 2010, which would cut interest expense by $20 million to $25 million in 2010 and 2011.
Previously, the company's debt terms allowed it only to make acquisitions of $100 million annually, but it will now be able to target takeovers in the $200 million to $300 million range. Hanesbrands also now will be able to return cash to shareholders either through share repurchases or dividends.
The company reaffirmed it expects that a 5-percent bump up in net shelf space will add $200 million to sales in 2010, independent of consumer spending trends.
Wolverine’s Krueger appointed chairman; quarterly dividend declared
Wolverine World Wide (NYSE: WWW), parent of Merrell, appointed President and CEO Blake Krueger as chairman of its board of directors, succeeding Timothy Donovan, who will remain on the board. It also declared a quarterly cash dividend.
Krueger has been an executive at the company for more than 16 years. He said he would focus on global growth opportunities. The position change is effective Jan. 1.
The company’s board declared a quarterly cash dividend of $0.11 per share of common stock. It is payable on Feb. 1, 2010, to stockholders of record on Jan. 4, 2010. The dividend is equal to the last quarterly dividend and reflects an indicated annual dividend of $0.44 per share.
Sport Chalet among ‘biggest percentage price decliners’ on Nasdaq
Sport Chalet (Nasdaq: SPCHA and SPCHB) topped the list of “biggest percentage price decliners” among common stocks on the Nasdaq Stock Market on Dec. 10. Its shares dropped $0.52 to close at $1.93 on a volume of 37,600. Its 52-week range is $0.15 to $2.92.
--Compiled by Wendy Geister
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