Sports Chalet Falls on Guidance

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Shares of Sport Chalet Inc. fell 20 percent Friday after the sporting goods retailer said that it expects to report a loss in its fourth quarter, as sales decline due to a slowdown in consumer spending.


The La Canada Flintridge-based sporting goods retailer said it expects a loss of 20 to 25 cents per share for the quarter, compared to a net income of 6 cents per share for the final quarter of 2007. Wall Street analysts polled by Thomson Financial had predicted a loss of 7 cents per share.


The company said it anticipates sales of $97 million, slightly down from down $97.8 million for the same period a year earlier and off analysts’ predictions of $101 million.


The company added that it expects same-store sales to drop about 9 percent and expects revenue to be hurt by promotions the chain used to unload winter merchandise.


For the year, the company expects a loss of 15 cents to 20 cents per share and sales of $388 million to $403 million, with same-store sales falling about 5 percent. Analysts anticipated a loss of 11 cents per share on revenue of $406 million.


Sport Chalet is scheduled to report its fourth-quarter and full-year results in early June.


Shares of the company’s Class A stock were down $1.10 to close at $4.35 in Friday afternoon trading.

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