March 14, 2019
Net loss was $63,971,000 in the fourth quarter ended Feb. 2 including a $98.3 million loss on the sale of Lids to Ames Watson Capital owned FanzzLids, against income of $56,045,000 last year as revenues dipped 2% to $675,491,000 from $689,392,000, but would have been up 4% excluding last year’s 14th week.
Net income in the important Holiday quarter ended Feb. 2 was up 49% to $29,612,000 from $19,936,000 despite comping against the 14th week last year that pulled sales down 1% to $304,564,000 from $308,245,000 with $12.6 million of lost sales attributed to the extra week.
Net income increased 29.5% to $8,677,000 in the third quarter ended Feb. 2 from $6,699,000 last year on 3.8% higher revenues of $170,612,000, up from $164,317,000 with the missing week this year from the calendar shift.
The Connecticut Supreme Court ruled 4-3 that a lawsuit against the gunmaker can proceed on the grounds that its marketing campaign for the Bushmaster rifle that was used in the Sandy Hook killings glorified the use of the weapon and could be a violation of the state’s unfair advertising statutes.
The operating loss in the sports group was $232,084,000 against income of $6,545,000 for the final quarter ended Dec. 30 on a 2% sales decline to $232,686,000 from $236,771,000 that saw a 130 b.p. deterioration in gross margin to 20.7% as well as some $237.2 million of a total $501.4 million in impairment charges that the company took.
The planned meeting between President Trump and President Xi to sign a new trade deal will happen no sooner than April and China is pressing to move the meeting from Mar-a-Lago to Washington with the U.S. President declaring that he is in “no rush” to complete a deal.