TSA Comp-Store Sales Decline 4.0%

The Sports Authority bottom line, after taxes and extraordinary and gains, was $7.6 million, down from $8.2 million a year ago. Income, before taxes and extraordinary gains, increased to $7.3 million (22? EPS) versus $6.7 million (21? EPS).

In addition, this year's Q2 benefited from a $300,000 extraordinary gain from the early repayment of debt, compared with a like gain of $1.4 million last year. Sales for the quarter were $370.8 million (-4.3%). In line with the company's previously
communicated expectations, comp-store sales declined 4.0%. However, gross profit as a percent of sales increased 90 basis points to 28.1%. SG&A expense sdecreased $600,000.

Commenting on the Q2 results, Marty Hanaka, COB/CEO, stated, "As expected, the sluggish economy continued to exert pressure on the top line of our income statement. However, our focus on generating profitable sales enabled us to achieve a substantial margin improvement and maintain a solid bottom line. In fact, this is the fifth consecutive quarter of improved income before extraordinary items versus the comparable period in the prior year."

Balance sheet improvements included a $22 million reduction in inventory in the prior year."