Gander Mountain cuts loss, improves comps for 1Q

ST. PAUL, Minn. Gander Mountain reported that fiscal 2009 first-quarter consolidated sales were $227.7 million compared to consolidated sales of $207.7 million for the first quarter of fiscal 2008, a 9.6% increase.

Retail segment sales were $209.9 million, an increase of $21.9 million or 11.6%, as compared to the fiscal 2008 first quarter.

Retail segment net loss was $16.4 million compared to a retail net loss of $22.8 million for the first quarter last year, an improvement of $6.4 million, or 28.3%. The improvement resulted primarily from sales gains, improved leverage in SG&A, and reduced interest expense.

Comparable-store sales during the first quarter of fiscal 2009 were 7.4 %, an improvement over a decrease of 0.2% in the fourth quarter of fiscal 2008. The firearms, ammunition, marine and camping categories all experienced strong sales performance during the quarter.

"Strong comparable sales performance in our retail segment allowed Gander Mountain to report continued operating improvement, even during the slowest seasonal period in the hunt-fish-camp categories and in a difficult retail environment. We continue to apply a more disciplined approach to our operations, capital, and expense decisions," said David Pratt, chairman and interim chief executive officer. "As expected, the 2009 retail environment remains challenging. We believe that our ongoing efforts to improve operating margins, manage costs and reduce debt will continue our momentum. I would like to thank our associates, vendors, and shareholders for their continued support."