Sports Authority's Financials a Slam Dunk

MIAMI-Sports Authority Inc., which bills itself as the nation’s largest full-line sporting goods retailer, has a new financial game plan that is translating to a first-quarter net income of $1.7 million or five cents per diluted share.

That performance compares with a net loss of $6.3 million or 19 cents per share in the same 2001 period.

The 15-year-old, 200-store Fort Lauderdale, FL-based retailing chain logged sales of $353.5 million in the period ended May 4 versus $339.4 million a year ago. Comparable store sales were up by 3.9%.

Earnings of five cents per diluted share were ahead of the company’s previous projection. That has spurred Sports Authority chairman/CEO Martin Hanaka to raise the company’s estimate of full-year earnings to 68 cents per diluted from 65 cents.

In a prepared statement, he estimates actual cash outflows for 2002 income taxes at about $3 million.

“Comparable store sales were quite strong early in the quarter, but softened in April with unseasonable weather patterns in our northern markets,” Hanaka says. “Gross profit margins continued to perform well, increasing by 80 basis points over last year due to smarter buying and better use of information derived from our systems investments.”

Sports Authority sells in 32 states and in Japan through a joint venture licensing agreement with AEON Co. Ltd. which operates 34 stores.