Difficult First Quarter for Gander Mountain Despite DM Sales

Gander Mountain Co., a hunting, fishing, boating and outdoor products marketer, reported a first-quarter loss of $24.4 million on sales of $207.7 million, compared with a $22.8 million loss on $175.7 million in sales during first-quarter 2007. The quarter ended May 3.

The first-quarter 2008 period included $19.7 million in direct marketing sales attributable to Gander Mountain’s acquisition of Overton’s in December 2007. The company’s comparable store sales dropped 6.7% between first-quarter 2007 and first-quarter 2008.

“As anticipated, first quarter results in our seasonally-smallest quarter reflect continuing economic pressure, both in the broad economy and particularly with the purchase of discretionary items. Overall, conditions eased in the first quarter of 2008 from late 2007 and our results were in line with our expectations,” said Mark Baker, Gander Mountain’s president and CEO, in a statement.

Baker continued, “In the second quarter of fiscal 2008, we expect to benefit from the positive impact of Overton’s peak marine business. The combination of cost-saving initiatives, growth in direct marketing, fewer store openings and other strategic sales initiatives will position Gander Mountain for improved performance in fiscal 2008.”