December 10, 2009 / 10:16 PM / in 8 years

CORRECTED - CORRECTED-UPDATE 1-Forzani profit up 71 pct, sees challenging Q4

(Corrects consensus view in the first bullet point to C$0.27, not C$0.28)

* EPS C$0.37 vs consensus view of C$0.27

* Revenue up 5 pct

* Same store sales up 2.3 pct

* Says Q4 results will be challenging

Dec 10 (Reuters) - Forzani Group FGL.TO clocked a 71 percent rise in third-quarter profit as favourable weather through late September and October drove customers to stores at Canada’s biggest sporting goods retailer.

However, the retailer said its overall fourth-quarter results will be challenging as sales in the first five weeks of the period were hindered by unseasonably warm weather across much of the country and by continuing consumer caution.

Same-store sales for the first five weeks of the fourth quarter declined 8.6 percent for corporate locations, the company said.

For the third quarter ended Nov. 1, the Calgary, Alberta-based company, whose banners include Sport Chek, Coast Mountain Sports and Atmosphere, reported net earnings of C$11.4 million ($10.86 million), or 37 Canadian cents a share, compared with C$6.6 million, or 22 Canadian cents a share, a year earlier.

Revenue rose 5 percent to C$381.1 million, with same-store sales rising 2.3 percent.

Forzani was expected to report an average of 27 Canadian cents a share and revenue of C$362.2 million, according to Thomson Reuters I/B/E/S/.

Forzani shares, which have surged 76 percent year to date, closed at C$12.94 Thursday on the Toronto Stock Exchange. ($1=1.050 Canadian Dollar) (Reporting by R. Manikandan in Bangalore; Editing by Anil D‘Silva)

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