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Forzani profit rises
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RICHARD BLOOM
Globe and Mail Update

Calgary-based sports retailer Forzani Group Ltd. posted stronger second-quarter profit Wednesday, showing hefty growth as its major Canadian competitors struggled during the spring-summer sales season.

For the three-month period ended July 28, Forzani reported profit of $3.6-million or 12 cents a share, up from last year's earnings of $2.5-million or 9 cents.

Sales for the quarter shot up to $244.3-million from $195.2-million a year earlier.

Same store sales — a key measure within the retail location, gauging receipts at locations open at least one year — rose 7 per cent among its corporate stores and 3.4 per cent at its franchise outlets.

"In stark contrast to the general retail landscape, [Forzani] has posted exemplary results in both same store sales and gross margins," John Forzani, chairman and chief executive officer, said in a statement.

Indeed, as retail heavyweights Hudson's Bay Corp. and Sears Canada Inc. recently posted sluggish earnings for the May-to-July quarter, blaming unseasonably cool spring weather.

Rival Canadian Tire Corp., however, did manage to post stronger earnings for its latest quarter. Speculation abounds within the industry that Canadian Tire may try to buy Forzani. A spokesman for Canadian Tire has denied the rumour.

"Our results have continually improved over the past five years as the company has continued to focus on and strengthen its customer service, training and merchandising strategies. We are very pleased with our performance," Mr. Forzani added.

Forzani's banners include Sport Chek, Coast Mountain Sports, Forzani's and Sport Mart. In its franchise division, Forzani's brands include Sports Experts, Intersport, RnR, Econosports and Atmosphere.

During its second quarter, Forzani said it opened six new corporate stores and closed one small outlet. In its franchise division, two new stores were opened, two were renovated and two were closed.

Shares of Forzani, traded on the Toronto Stock Exchange, currently sit at the $20 range — the top end of their 52-week band of $6.75 - $25.50.

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