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On Thursday, the La Canada Flintridge-based company reported a net loss of $32.4 million, or $2.29 per share, for the third quarter of fiscal 2009.
That includes a non-cash impairment charge and valuation allowance.
That compares with a net loss of $682,000, or 5 cents per share, for the same period a year earlier.
Sales fell 10.3 percent to $104.6 million for the third quarter of fiscal 2009, from $116.6 million for the third quarter of fiscal 2008.
Eight new stores not included in same-store sales contributed $4.7 million in sales for the quarter, while same-store sales decreased 15.4 percent.
The decline in same-store sales was impacted primarily by "soft macroeconomic conditions," the company said, which included weak housing trends, rising unemployment, and the state budget crisis, as well as unseasonably warm weather in Sport Chalet's core markets.
In a statement accompanying the third-quarter results, Chairman and CEO Craig Levra called this an "unprecedented time in the economic history of our country" and noted that Sport Chalet continued to experience "a challenging retail environment and decreased consumer spending."
"This, combined with unseasonably warm weather, negatively impacted our top and bottom line performance," he said. "As a result, we accelerated
our promotional activity and cost reduction initiatives, which we believe are essential as we navigate through these difficult times."
Levra said the company has successfully pared down much of its older inventory and is "leaving no stone unturned" to cut costs while also improving our operations and meeting the needs of customers.
Last week, Sport Chalet announced that it is "engaged in an evaluation of strategic alternatives."
Those alternatives include raising additional capital, amending or establishing a new source of credit, further reducing expenses, or continuing to execute the company's current operating plan.
The company has retained Wedbush Morgan Securities as its financial adviser.
Thomas Doyle, vice president of information and research for the National Sporting Goods Association, said most of the larger sporting goods chains have reported a decline in same-store sales.
"Most have shown negative numbers for the past two quarters," Doyle said last week.
kevin.smith@sgvn.com
(626) 962-8811, Ext. 2701
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