Corporate comparable store sales were driven by stronger than expected results in footwear, hockey and athletic clothing.
Wholesale sales for the quarter were $54.4 million, up 21.4 percent from the prior year. Franchise comparable store sales were up 5.3 percent for the quarter on the strength of footwear, athletic and winter clothing.
The Company's margins for the quarter were 37.9 percent, up 50 basis points from the prior year mark of 37.4 percent.
In absolute dollars, combined gross margin increased $27.2 million to $129.7 million compared to $102.5 million in the 13-week period last year.
Corporate store operating expenses, as a percent of retail revenue, decreased to 21.5 percent this year versus 23.2 percent in the prior year. On a comparable store basis, store-operating expenses were 20.1 percent of revenue against 22.0 percent last year.
Net earnings for the 52 weeks ended January 29, 2006 were $13.8 million compared to $21.5 million for the 52-week period in the prior year. Basic and diluted earnings per share were $0.42, compared to $0.66 in the prior year. Cash flow from operations decreased from $56.8 million to $47.8 million. On a per share basis, cash flow decreased 16.7 percent to $1.45 compared to $1.74 the prior year.
The Forzani Group Ltd is Canada's largest national seller of sporting goods, offering a comprehensive assortment of brand-name and private-brand products, operating stores from coast to coast, under the corporate banners: Sport Chek, Coast Mountain Sports, Sport Mart, and National Sports.
The Company also retails on-line at www.sportmart.ca and provides a content rich sporting goods information site at www.sportchek.ca. The Forzani Group is also a franchisor under the banners: Sports Experts, Intersport, RnR, Econosports, Atmosphere, Pegasus, Tech Shop, Nevada Bob's Golf, Hockey Experts and The Fitness Source.
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