June 9, 2010 / 3:50 AM / in 7 years

UPDATE 1-Forzani Group swings to adjusted Q1 profit

* Adj Q1 EPS $0.07 vs loss of $0.04/ shr

* Revenue up 7 pct

June 8 (Reuters) - Forzani Group FGL.TO rebounded to a first-quarter adjusted profit from a loss on brisk sales of Vancouver 2010 Winter Olympics licensed products and spring categories at the biggest sporting goods retailer in Canada.

Forzani, whose store banners include Sport Chek, Intersport, and Atmosphere, posted a net loss of C$691,000 ($660,000), or 2 Canadian cents a share, compared with a year-ago loss of C$1.1 million, or 4 Canadian cents a share.

Excluding one-time marketing costs and the higher stock-based compensation expense, the company said it earned 7 Canadian cents a share in the latest quarter, compared with a loss of 4 Canadian cents a share a year ago.

Analysts polled by Thomson Reuters I/B/E/S had expected, on average, a profit of 3 Canadian cents per share, before exceptional items on revenue of C$350.1 million.

While the Vancouver Olympics spurred sales of licensed apparel, especially Team Canada hockey jerseys, seasonable weather drove a rise in in sales of all spring categories, such as outerwear, athletic clothing, footwear and hockey equipment.

Revenue grew 7 percent to C$328.9 million, while gross margins edged up to 34.8 percent from 32.4 percent last year.

The company's shares closed more than 2 percent lower at C$16.25 Tuesday on the Toronto Stock Exchange. ($1=1.047 Canadian Dollar) (Reporting by Antonita Madonna Devotta in Bangalore; Editing by Anshuman Daga)

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