Sport Chalet reports lower Q2 FY08 profit numbers
Sport Chalet (Nasdaq: SPCHA and SPCHB) said its net income for the second quarter of FY08 -- $739,000, or $0.05 per diluted share, compared to $1.7 million, or $0.12 per diluted share, for the same period last year -- was impacted by a challenging economy, particularly in California where the majority of its stores are located
Sales for the quarter increased 7.0 percent to $97.7 million compared to $91.3 million for the second quarter of FY07.
The company said seven new stores not included in same-store sales contributed $8.0 million in sales for the quarter, while same-store sales decreased 2.2 percent. Sales were negatively impacted by softer macroeconomic trends, costs related to new store openings and competitors opening new stores in existing markets.
Gross profit as a percent of sales was 30.4 percent compared to 32.2 percent for the second quarter of last year, hit by increased rent as a percent of sales in newer stores, which take time to reach operating efficiency, and increased promotional activity.
Selling, general and administrative expenses (SG&A) as a percent of sales improved to 28.8 percent from 29.1 percent last year, as a result of reduced existing store and overhead costs, it added.
Under Armour executives sell shares
The CEO and two top executives at Under Armour (NYSE: UA) sold more than $130 million company shares. The sales, which were transacted late last week, were disclosed just minutes after the closing bell on Nov. 5, a day when heavily shorted shares of Under Armour fell more than 8 percent on heavy volume.
The sales and stock movement came as analysts have expressed concerns about Under Armour's inventory, and despite Under Armour reporting better-than-expected results and upping its guidance.
- Founder, Chairman, President and CEO Kevin Plank sold 1.5 million shares at $59, decreasing his holdings to 12.5 million shares of Class B stock, or a 25.7 percent stake.
- Senior Vice President of Retail Scott Plank sold 765,000 shares at $59, decreasing his holdings to 2.62 million shares, or a 5.4 percent stake.
- Senior Vice President of Outdoor Kip Fulks sold 150,000 shares at $59, decreasing his holdings to 578,500 shares.
Shares of Under Armour fell almost 8.4 percent on Nov. 5, closing at $51.37 and putting the stock down about 19.4 percent since the close on Oct. 30 and a little more than 30 percent from its August, all-time high of $73.40.
Outdoor Channel to restate '07 earnings for Q1, Q2
Outdoor Channel Holdings (Nasdaq: OUTD) said it will restate results for the first two quarters of 2007 to account for a change in the amortization period related to performance units granted in the fourth quarter of 2006.
The company said the adjustments will materially impact its results for the first and second quarters of 2007 but the overall compensation expense related to the performance units is expected to remain at $6.6 million for the full year ending Dec. 31, 2007.
New CEO named for struggling Exel Sports
With an eye on concentrating sales and restoring profitability, Olli Juvonen has been appointed CEO of Exel Sports Oy and manager of the sport division, taking over for Aki Karihtala.
Since 2006, Exel said it has gone through substantial changes: outsourcing of assembling of poles and floorball sticks to China, logistics in Finland and a move to new offices in Vantaa, Finland. In addition, it has had a heavy downsizing of its German operation. The experience from the outsourcing and logistics has not been satisfactory and the sales have not developed as anticipated, the company noted.
Exel added that Juvonen has more than 20 years of experience running turnaround projects with success in similar situations.
Oakley shareholders approve Luxottica deal
Oakley (NYSE: OO) said its shareholders approved the company's takeover by Italy's Luxottica Group SpA. Oakley, which will become a unit of Luxottica, said about 83 percent of its shares were voted in favor of the deal.
Shareholders will receive $29.30 in cash for each share held. The company expects the merger to close in mid-November. Luxottica announced plans in June to acquire Oakley for $2.1 billion in cash.
Backcountry.com-parent Liberty Media reports mixed Q3 results
Liberty Media Corp. (Nasdaq: LINTA and LCAPA), parent of Backcountry.com, reported increased third-quarter revenues, though its home-shopping QVC unit saw profits slide. The company comprises Liberty Interactive Group, which includes QVC and other interactive businesses, and Liberty Capital Group's Starz Entertainment LLC cable offerings.
Liberty Interactive Group reported a 10 percent drop in operating income to $231 million from $257 million last year. Revenue edged up to $1.69 billion from $1.65 billion. The company blamed a sluggish retail environment in the U.S. for the profit decline at QVC. German and Japanese units also struggled.
Liberty Capital Group nearly doubled operating income to $78 million from $40 million last year, as the network commanded higher distribution fees from cable operators. Revenue rose 11 percent to $282 million.
Jarden approves repurchase plan
Jarden Corp. (NYSE: JAH), parent of Coleman and K2, said its board of directors approved a plan to repurchase up to $100 million in common stock. As of Oct. 29, the company had approximately 77.6 million shares of common stock outstanding.
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