Forzani Group Ltd. said Tuesday it cut its losses by more than half in the second quarter as a company-wide plan to refocus the business began to show results at Canada’s largest sporting goods retailer.
“We continue to make great progress on our strategic initiatives,” chief executive Bob Sartor told analysts on a conference call Tuesday.
Earlier, Calgary-based Forzani reported it lost $1.8 million or six cents a share in the 13 weeks ended Aug. 1, compared with $4.4 million or 14 cents per share in the comparable period in 2009.
Revenue for the three months rose to $315.8 million from $296.5 million as the company managed to grow in a tough and competitive retail economy.
Consolidated same-store sales were up 4.4%, 5.2% at corporate stores and 3.1% at franchise operations.
In April of 2009, Forzani announced a strategic shift that aims to streamline its numerous banners, expand its marketing reach and improve productivity.
“I believe we are truly on the right track with our company,” Sartor said.
During the second quarter, Forzani continued to roll its Coast Mountain Sports brand into its Atmosphere banner, uniting the two outdoor-gear retailers.
It also opened 11 new GNC performance nutrition boutiques, eight Nevada Bob’s Golf boutiques and 19 new Hockey Experts boutiques within Sport Chek locations.
The company’s e-commerce initiative, rolled out nearly a year ago, now offers more than 9,000 unique products, compared to the 5,000 it had when it first launched. By the end of the second quarter, nearly 7.5 million people had visited the site, up from 2.1 million at the end of the first quarter.
“Now that we’ve got an online presence, we’re able to extend our retail reach to customers outside our normal trade areas, and provide support to what I have read is an estimated 70% of consumers that research their purchases online,” said Sartor.
So far in the third quarter, retail system same-store sales are up 4.8%, compared to a 1.1% drop a year earlier. The strongest areas are athletic clothing, footwear and hard goods like cycling, golf, fitness and hockey equipment.
Forzani operates some 547 stores under several banners, including Sport Chek, Sport Mart, National Sports, Athletes World, Atmosphere and Nevada Bob’s Golf. Over the past year, it has cut the number of its stores by 14.
