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Forzani reports $11.4 million Q3 profit, up from year ago as sales rise

Thu, 12/10/2009 - 12:00pm
The Associated Press

Forzani Group Ltd. (TSX:FGL) reported Thursday an increase in its third-quarter profit compared with a year ago as revenue increased, but warned of trouble ahead.

The sporting goods retailer said it earned $11.4 million or 37 cents per share for the quarter ended Nov. 1 compared with a profit of $6.6 million or 22 cents per share a year ago.

Revenue totalled $381.1 million, up from $362.9 million, while same-store sales were up 2.3 per cent.

Analysts polled by Thomson Financial were on average expecting Forzani to earn 27 cents per share during the third quarter.

However, Forzani warned sales in the first five weeks of its fourth quarter have been hurt by unseasonably warm weather across much of the country and by continuing consumer caution.

Forzani, Canada's largest sporting goods retailer, announced in April that it planned to streamline its banner count to improve efficiencies and reduce overlap and competition between its own outlets.

It outlined plans in September to consolidate its two outdoor and lifestyle banners under a single name by next spring.

The company's other retail banners include Sport Chek, Sport Mart, Athletes World, National Sports, Sports Experts, Intersport, Econosports, Tech Shop, Pegasus, Nevada Bob's Golf, Hockey Experts, The Fitness Source, S3 and RnR.

Shares in the company, which reported its results after the close of markets, were up 28 cents at $12.94 on the Toronto Stock Exchange.

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