– Operating Income Increases 73%, Excluding Prior Year Integration Costs –
– Diluted EPS of $0.11 –
DENVER, Nov. 21 /PRNewswire-FirstCall/ — Gart Sports Company (Nasdaq:GRTS) today announced results for its third quarter ended November 2, 2002.
Third quarter net income increased to $1.4 million, or $0.11 per fully diluted share, compared with $0.3 million, or $0.03 per fully diluted share, in the prior year’s third quarter, excluding the effect of $2.2 million net of tax, or $0.19 per diluted share, of one-time integration costs associated with the Company’s 2001 acquisition of Oshman’s Sporting Goods. The quarter’s operating income increased 73% to $3.7 million compared with $2.1 million during the prior year’s quarter, excluding integration costs.
Total sales for the 13 weeks ended November 2, 2002 increased 3.9% to $227.8 million compared with $219.1 million in the prior year’s third quarter. Third quarter comparable store sales increased 1.5% from last year.
On June 7, 2001, Gart Sports Company completed its acquisition of Oshman’s. Results include Oshman’s operations from June 8, 2001.
Net income for the 39 weeks ended November 2, 2002, increased to $10.3 million, or $0.82 per fully diluted share, compared with $4.9 million, or $0.50 per fully diluted share, in the prior year’s 39 week period, excluding the effect of $4.3 million net of tax, or $0.44 per diluted share, of one-time integration costs associated with the Oshman’s acquisition. Operating income for the 39 weeks increased 65% to $22.9 million compared with $13.9 million during the same period last year, excluding integration costs.
Total sales for the 39 weeks ended November 2, 2002, advanced 18.5% to $734.4 million compared with $619.7 million in the prior year’s 39 weeks. Year-to-date comparable store sales, which do not include the Oshman’s stores for the first six months of either fiscal year, increased 1.8% from the same period last year.
Doug Morton, Chairman, President and Chief Executive Officer of Gart Sports Company, stated, “We are pleased to report strong third quarter earnings that were well above last year’s results. Sales in August were impacted by the lingering effects of drought and forest fires in the Rocky Mountain region. However, the return of normal weather conditions later in the quarter to most of our major markets provided a strong boost to our ski, snowboard and outdoor apparel categories. Additionally, we continued to see an increase in our gross margins across almost all of our merchandise categories with particularly strong performance in footwear, outdoor apparel and athletic hardgoods. Finally, our continued emphasis in controlling costs produced a 50 basis point improvement in our selling and administrative expenses.”
Gart Sports Company, headquartered in Denver, Colorado, is the largest full-line sporting goods retailer in the Western United States. The Company was established in 1928 and offers a comprehensive high-quality assortment of brand name sporting apparel and equipment at competitive prices. Gart Sports Company operates 184 stores in 25 states under the Gart Sports(R), Sportmart(R) and Oshman’s(R) names. The Company’s e-tailing websites, located at www.gartsports.com , www.sportmart.com and www.oshmans.com , are operated by GSI Commerce, Inc. under a license and e-commerce agreement. The Company trades on the Nasdaq National Market under the symbol GRTS.