Sponsors
Billabong ▲ +0.025 | PPR ▲ +1.05 | American Apparel ▲ +0.008 | The Buckle ▼ -0.07 | Columbia ▼ -0.49 | Deckers Outdoor ▼ -0.13 | Dicks ▼ -0.15 | Foot Locker ▲ +0.12 | Genesco ▼ -2.64 | Iconix Brand Group ▲ +0.13 | Jarden Corp ▲ +0.16 | Nordstrom ▼ -0.39 | Luxottica ▲ +0.57 | Nike ▼ -0.27 | Pacific Sunwear ▼ -0.22 | Skullcandy ▲ +0.09 | Sport Chalet - 0 | Urban Outfitters ▲ +0.02 | VF Corp ▲ +0.30 | Quiksilver ▼ -0.02 | Zumiez ▲ +0.20 | Macys ▼ -0.07 | Tillys ▼ 0.00 |
Ticker Sponsor
Readers Say
Executive Edition rules
Executive Edition rules

“Shop-Eat-Surf” is now officially, the first stop in the morning for industry news. Accurate reporting, no sensationalism, and just the facts. Refreshing support to an incredible industry with a very bright future. Tiffany has cemented her role in the industry....the site is thought provoking, and inspirational. Learning the stories of others is incredibly useful. Great way to connect the retail community with the wholesale and financial, instantly and nationwide. ... And the Executive Edition rules.

- By Bob Hurley, Chairman, Hurley International
Great insight into the issues
Great insight into the issues

I am a big fan of Tiffany and her team as well as an avid reader of Shop-Eat-Surf. I shop, I eat, I surf -- I should pay.

- By Kevin Bailey, President, Vans
Industry Insight

AGENDA: Video recaps, 2015 show dates, "Love Made Me Do It" women's networking series on Wednesday.

STOKES ME: Deadline today to enter SIMA Humanitarian Fund's Bowl-a-thon fundraiser.

Details on Industry Insight.


Tiffany Montgomery
Print This Article

Sport Chalet narrows loss

By Tiffany Montgomery
November 04, 2009 2:31 PM

Sport Chalet, an important retailer for the action sports industry, narrowed its loss in the second quarter ended Sept. 27.

The 55-store retailer recorded a $1.2 million loss vs. a $4.2 million loss in the same period last year.

Sales declined 7.9% to $88.8 million.

Same-store sales fell 12.4%.

The company reduced expenses during the period by $7.3 million by cutting salaries, advertising, professional fees, utilities, repairs and maintenance costs.

For the first half of its fiscal year, Sport Chalet said EBITDA was $4 million, more than the $0.8 million minimum required by its banking agreements.

Sport Chalet appears to saved itself from the brink of disaster with help from vendors and landlords and by internally revamping operations, cutting costs, and managing inventories more effectively.

CEO Craig Levra previously talked to Shop-eat-surf about the initiatives Sport Chalet has taken and how Bank of America is backing the retailer, one of the industry's largest customers.

Sport Chalet got into trouble last year, when it technically defaulted on a portion of its loan agreement with the bank. The bank increased restrictions and conditions on the company, including requiring that it hire a consultant to prepare cash flow and operating budgets.

Then in February, Sport Chalet announced it was reviewing its strategic options, and reported what Levra describes as "awful" third quarter results. The company recorded a $10.1 million loss excluding a non-cash charge and other accounting considerations. Including the charge, the company lost $32.4 million in the quarter.

Though the economy is still tough, Sport Chalet has managed to keep all 55 of its stores open.

 


Articles You Might Have Missed