Sport Chalet, a large industry customer, narrowed its loss to $1.9 million in the quarter ended June 27.
The 55-store retailer ran into trouble in late 2008 when its poor results did not meet its banking covenants. But cost cutting, including rent reductions, and working with vendors on payments, among other initiatives, helped the company stay operating and keep all of its 55 stores open.
Read a previous Executive Edition interview with CEO Craig Levra about the company’s troubles and how it planned to survive.
Quarterly financial results
Sales: rose 0.4% to $79.7 million. Team sales and e-commerce sales were strong.
Same store sales: down 0.2%
Gross profit margin: improved to 28.3% vs. 26.4%, in part due to decreased rent and improved merchandise margins.
Net Loss: $1.9 million vs. $3 million
Banking covenants: Sport Chalet exceeded its EDITDA banking requirements. For the past 12 months, its EBITDA was $9.94 million vs. $5.35 million minimum required.
Sport Chalet stores are in California, Nevada and Arizona.
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