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Sports Authority 2Q in line
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August 28, 2001: 9:56 a.m. ET
Retailer meets estimates on cost cutting as sales fall in slow economy
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NEW YORK (CNNfn) - Sports Authority Inc. reported higher fiscal second-quarter profit Tuesday in line with expectations as the nation's biggest sporting goods retailer was able to control expenses in the face of declining sales.
For the quarter ended Aug. 4, Fort Lauderdale, Fla.-based Sports Authority (TSA: down $0.31 to $4.07, Research, Estimates) posted earnings before items of $7.3 million, or 22 cents a share, up from $6.7 million, or 21 cents a share, a year earlier. Analysts on average anticipated a profit of 22 cents a share, according to earnings tracker First Call.
Including a penny a share gain from the early retirement of debt, the company reported net income of $7.6 million, or 23 cents a share, down from $8.2 million, or 25 cents a share, a year earlier.
Trading of Sports Authority stock, which ended 3 cents higher at $4.38 Monday, was delayed at Tuesday's opening.
Second-quarter sales slipped 4.3 percent to $370.8 million from $387.5 million. Sales at stores open at least a year, a key gauge known as same-store sales, declined 4 percent in the quarter.
Selling, general and administrative expenses declined $600,000 in the quarter.
The company also said it maintains a conservative outlook for the second half as the sluggish economy continues to put pressure on sales and profit.
Sports Authority said it anticipates a low single-digit decline in comparable-store sales in the period with a slight improvement in margins, continued expense control.
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As a result, the company sees second-half earnings before items similar to the second half a year earlier.
The company expects to repay its remaining $12.8 million in notes obligations on Sept. 17, and sees third-quarter inventories slightly lower than a year earlier with year-end inventory levels at least $30 million below the comparable period in fiscal 2000. 
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Sports Authority
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