The Forzani Group Ltd./Le Groupe Forzani Ltee

The Forzani Group Ltd./Le Groupe Forzani Ltee

January 14, 2010 16:05 ET

FGL Reports Holiday Season Sales and Margins

CALGARY, ALBERTA--(Marketwire - Jan. 14, 2010) - The Forzani Group Ltd. (TSX:FGL) (the "Company"), Canada's largest retailer of sporting goods, today announced its Holiday Season results for the 10 week period ended January 10, 2010. The Holiday Season period encompasses the first ten weeks of the fiscal fourth quarter, including Christmas and Boxing Day.

"As we anticipated, sales were slightly lower than a year earlier because of consumer caution and unseasonably warm weather in November 2009," said Bob Sartor, CEO. "Even so, we managed our margins well by providing more current inventory and adopting less aggressive discounting. Also, sales for the last five weeks of the latest Holiday Season were actually higher than a year ago. Unfortunately, the gain in the last five weeks was not quite enough to offset the weak start."

For the latest ten-week Holiday Season period, total retail system sales declined by 1.8% from the prior year. On a same-store basis, retail system sales were down 2.7%. Corporate same-store sales decreased 3.6% while franchise retail same-store sales were down 1.1%. Corporate store gross margin rates improved 70 basis points versus the prior year. Corporate store inventory levels were as planned.

For the second half of the latest holiday season, same-store retail system sales rose 2.4% compared with the prior period. For the first half of the latest holiday season, as disclosed on December 10, 2009, same-store retail system sales were down 10.7% from the prior period.

The Company expects to disclose its financial results for the fourth quarter and full year ended January 31, 2010 on April 6, 2010.

Non-GAAP Measures:

The use of the term "Retail System Sales" (retail sales from corporate and franchise stores) is not recognized under Canadian generally accepted accounting principles. Management believes that this measure is useful supplemental information which provides the reader with an indication of the Company's total retail sales, but may not be comparable to measures used by other companies.

About Us:

The Forzani Group Ltd. is Canada's largest national retailer of sporting goods, offering a comprehensive assortment of brand-name and private-brand products, operating stores from coast to coast, under the following corporate and franchise banners: Sport Chek, Coast Mountain Sports, Sport Mart, National Sports, Athletes World, Sports Experts, Intersport, Econosports, Atmosphere, Tech Shop, Pegasus, Nevada Bob's Golf, Hockey Experts, S3 and The Fitness Source. The Company retails online at and has websites for several of its corporate and franchise banners which can be accessed through its main website at

Contact Information

  • The Forzani Group Ltd.
    Robert Sartor, CA
    Chief Executive Officer
    (403) 717-1342
    The Forzani Group Ltd.
    Michael Lambert, CA
    Chief Financial Officer
    (403) 717-1666
    The Forzani Group Ltd.
    Richard Burnet, CA
    Senior Vice President, Finance and Administration
    (403) 717-1442