Powersports market exit hurt Gander Mountain’s 2Q bottom line
September 3, 2009
Filed under Features
Outdoor retail chain Gander Mountain Co. felt the impact of its withdrawal from the boat, ATV and powersports services categories during the second fiscal quarter ended Aug. 1, it reported in a recent statement.
Consolidated net loss was $7.3 million for the fiscal 2009 second quarter compared to a consolidated net loss of $4.9 million for the same quarter last year, according to the company. The increased loss resulted primarily from discounts and markdowns associated with the withdrawal from powersports categories and increased advertising expense, the company stated.
Fiscal 2009 second quarter consolidated sales were $248.4 million, compared to consolidated sales of $252.9 million for the second quarter of fiscal 2008, a 1.8 percent decrease.
Retail segment sales for the second quarter were $210.8 million, a decrease of $2.3 million or 1.1 percent, as compared to the fiscal 2008 second quarter. Direct segment sales were $37.6 million for the quarter, compared to $39.7 million for the same quarter last year, a decrease of 5.4 percent, Gander Mountain reported.
During the quarter, Gander Mountain substantially completed its withdrawal from the boat, ATV and powersport services categories. Excluding the negative 4.2 percent impact of these categories, comparable store sales were a positive 1.8 percent during the quarter, the retailer explained.