The Sports Authority Inc. (Englewood, Colo.) has announced the resignation of Elliott Kerbis as president and chief merchandising officer. The ceo, Doug Morton, will oversee Kerbis’ former duties.
The announcement came as the sporting goods chain, in its first year following the merger of Gart Sports Co. and The Sports Authority in August 2003, reported first quarter results. Comparisons with the previous year were complicated by the fact that the two companies operated independently a year ago and there were significant costs attending the merger integration.
First quarter net income was $4.1 million (including the effect of after-tax merger integration costs of $5.2 million). Total sales for the 13 weeks ended May 1, 2004 were $572.0 million, compared with $228.4 million in the prior year’s first quarter as reported by the former Gart Sports Co. on a standalone basis. First quarter comparable store sales for the combined company increased 0.3 percent from last year’s combined company results.
The company opened seven stores and closed six — five former Sports Authority stores and one former Gart Sports store. It currently operates 385 stores in 45 states.
“We are pleased with our first quarter results given the on-going efforts to integrate the two companies,” Morton said. “We were particularly pleased with the strong gross margin performance delivered in the quarter combined with our ability to reduce inventories, on a per square foot basis, by approximately one percent versus the prior year. We are also pleased with the sales results delivered from the initial remodels performed on the former Sports Authority stores. We are committed to providing an improved shopping experience for all of our customers.”
The retailer is forecasting sales in the second quarter of fiscal 2004 to be approximately $630 million and comparable-store sales to be flat.