September 7, 2010 / 9:22 PM / 7 years ago

UPDATE 1-Forzani Group reports narrower loss as sales rise

* Q2 EPS loss C$0.06/shr v loss of C$0.14/shr

* Total sales up 6.5 pct at C$315.8 million

TORONTO, Sept 7 (Reuters) - Forzani Group FGL.TO on Tuesday posted a narrower quarterly loss than a year earlier but fell short of analyst forecasts, saying weak consumer confidence was holding back business at its retail stores.

The loss came even as consolidated sales at stores opened at least a year, or same-store sales, rose 4.4 percent.

The Calgary, Alberta-based retailer, whose banners include Sport Chek and Atmosphere, reported a loss of C$1.8 million ($1.7 million), or 6 Canadian cents a share, for the 13 weeks ended Aug. 1. That compared with a year-ago loss of C$4.4 million, or 14 Canadian cents per share.

Analysts had, on average, estimated a profit of C$1.9 million, or nil per share, according to Thomson Reuters I/B/E/S.

Retail sales for the period rose 5.5 percent to $228.3 million, while total sales rose 6.5 percent at $315.8 million.

During the quarter, Forzani Group incurred expenses as it continued to rebrand its Coast Mountain Sports stores under the Atmosphere banner.

The retailer also opened 11 new GNC outlets and eight new Nevada Golf specialists within its Sport Chek stores.

Shares closed down 1.5 percent on Tuesday at C$15.75 on the Toronto Stock Exchange, ahead of the earning numbers.

$1.00=$1.05 Canadian Reporting by Julie Gordon; Editing by Frank McGurty

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