Sport Chalet Inc. reported a fiscal first-quarter loss Wednesday that badly missed analyst estimates, fueled by a decrease in sales and the closure of two underperforming stores.
The La Cañada-Flintridge specialty sport retailer announced a loss of $2.8 million (-20 cents a share) for the quarter ended June 30, compared with a net income of $100,000 (1 cent) in the same quarter last year. Net sales fell almost 3 percent to $81.5 million.
Analysts had expected earnings per share of 2 cents on revenue of $85.4 million, according to Thomson Financial.
The hardest hit segment for the company was its Team Sales Division, which had its sales drop 31 percent in the quarter. Sport Chalet attributed the decrease to the departure of sales representatives and a decrease in comparable store sales.
The losses were somewhat offset by a more than 37 percent increase in online sales.
In its earnings release, the company also announced an increase in its credit facility with Bank of America from $65 million to $75 million.
Chief Executive Craig Levra said he was disappointed at the lower-than-expected sales, but remains optimistic about the company’s future.
“We are closely monitoring the uneven retail environment and will continue to respond as appropriate with promotional activities, including radio advertising and Action Pass member outreach," he said in a prepared statement.
Shares of Sport Chalet closed up 1 cent, or less than 1 percent, to $1.40 on the Nasdaq.