September 8, 2009 / 8:35 PM / 9 years ago

UPDATE 2-Forzani posts loss as cold summer hits sales

* Loss C$0.14/shr vs EPS C$0.05 a year ago

* Revenue inches up to C$296.5 million

* Says wet, cold summer cut “deeply” into seasonal sales

TORONTO, Sept 8 (Reuters) - Forzani Group FGL.TO swung to a quarterly loss on Tuesday as a cold and wet summer bit “deeply” into the sales of bicycles, in-line skates, sandals and swimsuits at Canada’s biggest sporting goods retailer.

The Calgary, Alberta-based retailer, whose banners include Sport Chek, Coast Mountain Sports and Atmosphere, said it lost C$4.4 million ($4.1 million), or 14 Canadian cents, a share in its second quarter. That compares with a profit of C$1.6 million, or 5 Canadian cents, a year earlier.

The results for the three months ended Aug. 2 included some sales for the key back-to-school shopping period, though the majority of those revenues will be reflected in its third-quarter numbers.

Revenue inched higher to C$296.5 million from C$295.6 million a year earlier. Analysts on average were expecting the company to report revenue of C$297.5 million, according to Reuters Estimates.

“Our results were impacted by a cautious consumer and a wet and cold summer across much of Canada that cut deeply into the sale of seasonal items,” Chief Executive Bob Sartor said in a statement.

“We anticipate that this cautious consumer attitude will prevail for the remainder of the fiscal year.”

Also on Tuesday the company said it planned to consolidate its two outdoor and lifestyle banners —- Coast Mountain and Atmosphere — under the Atmosphere name to improve efficiencies and reduce overlap.

Forzani also said it finished a technology harmonization project over the summer, which let it cut 28 jobs at its information technology group. It expects the move will trim annual expenses by C$3 million.

The company reported results after markets closed. During the day, its shares fell 1.4 percent to end at C$14.30 on the Toronto Stock Exchange.

$1=$1.08 Canadian Reporting by Wojtek Dabrowski; editing by Frank McGurty

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