Gander Mountain Co. posted a net loss of $4.9 million for the second quarter, compared to a net loss of $9.7 million in the prior year.
The direct marketer and retailer reported sales of $252.9 million for the quarter ended Aug.2, , an increase of 16.8% over $216.5 million last year.
Management attributed these results in part to the company’s acquisition of Overton’s, (Direct Newsline, Dec. 10), which brought in $39.7 million in revenue during the quarter.
"As anticipated, second quarter results reflect continuing economic pressure on consumer purchases of discretionary items, and we expect these conditions to persist in the second half of fiscal 2008," said CEO Mark Baker, in a statement.
The St. Paul, MN firm reported that gross profit increased 30.9% to $67.5 million for the second quarter. The firm attributed this to improvement in business mix relating to higher-margin direct sales and increased retail product margins.
In addition, Gander said its selling, general and administrative expenses for the quarter increased 21.1% to $66.9 million, reflecting the inclusion of $14.6 million in operational expenses from the direct marketing segment.
