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Jun 9, 2010
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Forzani Group swings to adjusted first quarter profit

Jun 9, 2010

June 8 (Reuters) - Forzani Group (FGL.TO) rebounded to a first-quarter adjusted profit from a loss on brisk sales of Vancouver 2010 Winter Olympics licensed products and spring categories at the biggest sporting goods retailer in Canada.

Swimwear at Intersport, a Forzani company - Photo: www.intersport.ca

Forzani, whose store banners include Sport Chek, Intersport, and Atmosphere, posted a net loss of C$691,000 ($660,000), or 2 Canadian cents a share, compared with a year-ago loss of C$1.1 million, or 4 Canadian cents a share.

Excluding one-time marketing costs and the higher stock-based compensation expense, the company said it earned 7 Canadian cents a share in the latest quarter, compared with a loss of 4 Canadian cents a share a year ago.

Analysts polled by Thomson Reuters I/B/E/S had expected, on average, a profit of 3 Canadian cents per share, before exceptional items on revenue of C$350.1 million.

While the Vancouver Olympics spurred sales of licensed apparel, especially Team Canada hockey jerseys, seasonable weather drove a rise in in sales of all spring categories, such as outerwear, athletic clothing, footwear and hockey equipment.

Revenue grew 7 percent to C$328.9 million, while gross margins edged up to 34.8 percent from 32.4 percent last year.

The company's shares closed more than 2 percent lower at C$16.25 Tuesday 8 June on the Toronto Stock Exchange. ($1=1.047 Canadian Dollar) (Reporting by Antonita Madonna Devotta in Bangalore; Editing by Anshuman Daga)

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