Net income tanked 87% to $3,067,000 from $23,998,000 hurt by shrinking margins as net sales fell 18% to $219,993,000 from $268,666,000 in the second quarter. Sales were down across categories with men’s leading declines, followed by hardgoods, accessories, women’s and footwear. By region, North American sales of $189.9 million were down 20%. International slipped 3% to $30.1 million, increasing 10% CC, with the Fast Times banner in Australia being a standout.

Gross margin contracted 500 b.p. to 34.1%, led by a 220 b.p. hit on store occupancy costs deleveraging on the sales ... Log in to view full article.