Gander Mountain increases Q4 revenues, hits record sales

St. Paul, Minn. Gander Mountain reported late Wednesday that its consolidated sales were $334 million for the fiscal fourth quarter, ended Jan. 31, a 5.2% increase from $317.6 million for the same quarter last year.

A good portion of the increase came from the company’s retail segment, which generated $322.0 million for the quarter, an increase of $10.0 million, compared with the fiscal fourth quarter in 2007. The chain’s direct segment jumped to $12.1 million in sales, compared with $5.5 million for the same quarter last year.

The company credits its increase in direct sales to the startup of Gander Direct Internet and catalog operations in the third quarter of fiscal 2008 and the inclusion of Overton's, which was acquired in December 2007.

Same-store sales were down 0.2%, due to negative sales of boats, ATVs and power sport services. However, this loss is an improvement over its 6.5% drop in same-store sales for the fiscal third quarter.

For the fiscal year, the chain reported a record $1.1 billion in sales, a 9.8% increase over the year earlier. Same-store sales dropped 5.6%.

"Gander Mountain improved its performance through the year in total revenues, operating performance and cash generation as we applied a more disciplined approach to our operations, capital, and expense decisions," said David C. Pratt, chairman and interim CEO. “Our ongoing efforts to build the leadership team, improve operating margins, and reduce debt should continue the momentum we generated in the 'New Gander Mountain' this last fiscal year."

The chain ended the fiscal year with 116 Gander Mountain stores in 23 states and three outlet stores.