The Sportsman's Guide to Report Record Sales for Quarter and Year as Internet Sales and Usage Exceed Expectations
Net Earnings for Quarter Up 27% Over Last Year's Total; Internet Sales For Quarter Over 10% of Total Sales; Annual Internet Gross Sales Total $13.4 Million; guideoutdoors.com to Launch Later This Quarter
SOUTH ST. PAUL, Minn., Jan. 25 /PRNewswire/ -- The Sportsman's Guide (Nasdaq: SGDE - news) announced preliminary results for the fourth quarter and year ended December 31, 1999. The Company expects to report approximately $56.8 million in sales and approximately $600,000, or $0.13 per share, in net earnings for the quarter December 31, 1999, compared to $52.5 million in sales and $469,000, or $0.10 per share, in net earnings for the same period in 1998. Internet sales were approximately 10% of total sales for the quarter.
The Company expects to report sales of approximately $162.5 million for 1999, a 14% increase over the $142.9 million reported one year ago. For the year the Company expects to break even, compared to net income of $1.4 million or $0.31 per share, for 1998.
Total Internet gross sales for 1999 were $13.4 million, nearly $1.0 million above the $12.5 million that management had projected and well above last year's total of approximately $1.2 million. The Company also noted that, during the fourth quarter of 1999, its e-commerce web sites, sportsmansguide.com and bargainoutfitters.com , reported a total of 1.3 million total user sessions, averaging 15,000 per day, with an average length of user session of nearly 16 minutes.
Gary Olen, Chairman and Chief Executive Officer of the Company, stated, ''We are pleased with the significant increase in Internet sales and usage. The results of our Internet operations more than validate that ours is an Internet model that will succeed.''
Olen also stated that the Company's online order taking, order processing and order fulfillment capabilities were up to the challenge of the fourth quarter's Internet activity. ''Customers who placed their orders online reported the same high level of satisfaction as our traditional catalog customers.''
Olen noted that the Company made significant investments in 1999. Approximately $1.2 million of incremental dollars were invested in establishing and advertising the Company's new web sites. In addition, the Company tested new product categories and built new specialty catalogs. ''As a result of our investing in the 1999 mail plan, we have been able to determine how many main and specialty catalogs we can effectively mail on an annual basis. With these results in hand, we have adjusted our year 2000 mail plan. In 2000, we expect to mail approximately 60 million catalogs versus 80 million in 1999. As a result, we will reduce advertising costs and sales, but believe we will achieve a higher level of profitability.''
Olen continued, ''We are very excited about year 2000 and beyond. As a result of our investments in 1999 we are better positioned in both our catalog business and Internet initiatives. Our strengths in the catalog business, as well as our proven ability to develop a network of e-commerce Web sites, uniquely positions us to expand our Internet initiatives, as well as provide e-commerce and fulfillment solutions to other businesses.''
Olen concluded, ''We enjoy unique leverage as a catalog retailer and have made significant progress in our Internet business model. Of the $1.2 million we invested in our Internet initiatives in 1999, less than half went to advertise our sites. As a catalog retailer we have the benefit of advertising our Internet sites in our catalogs, which in 2000 will reach 60 million customers. In an environment where many Internet retailers are committing $5.00 in advertising costs for every $1.00 of sales, we spent approximately $500,000 of incremental dollars and generated over $13 million in online sales in 1999. That's the kind of leverage we enjoy as a catalog retailer.''
The Sportsman's Guide expects to report its audited financial results for the fourth quarter and the year by mid-February.
Later this quarter The Sportsman's Guide will launch guideoutdoors.com , a community/destination portal for the outdoor enthusiast, offering e-commerce and content features. The site will feature full-line and expanded merchandise offerings at discount prices. The site's community of users will be provided content consisting of a broad and deep selection of information updated daily, covering all aspects of the outdoor experience. Personalized web pages will include articles on hunting, fishing and camping experiences, information from local, regional and national wildlife and natural resource departments, local, regional and national weather forecasts, tips and hints on planning an upcoming outdoor event, photo galleries, chat rooms, message boards, maps and free e-mail. In addition outdoor, sports and other news will be provided as a result of a recently signed agreement with the Associated Press. The destination/portal site will include links to the Company's online retail store and liquidation outlet sites.
Gregory R. Binkley, President and Chief Executive Officer of GuideOutdoors.com, the Company's Internet subsidiary, stated, ''We are right on track for our launch. We continue to be excited about the opportunity to become the leading marketer of value priced outdoor gear and general merchandise by building the Internet's most heavily trafficked outdoor-oriented portal. We truly believe that www.guideoutdoors.com will occupy a unique niche on the Internet, providing outdoor enthusiasts with everything they want to buy, everything they want to know and a community with whom to share their lifestyle experiences.''
The Sportsman's Guide is a catalog and Internet company offering value-priced outdoor gear and general merchandise, with a special emphasis on outdoor clothing, equipment and footwear.
This release contains forward looking statements which are subject to change based on various important factors, including but not limited to general economic conditions, a changing market environment for the Company's products and the market acceptance of the Company's catalogs and Internet sites and offerings.
For more information, contact William P. Bartkowski of BlueFire Partners, 612-344-1000 or 612-344-1012 direct, for The Sportsman's Guide.
SOURCE: The Sportsman's Guide |
