In its second-largest acquisition, Amazon buys the company for $970 million.
Online sales at The Sportsman`s Guide accounted for 27% of sales in Q1 up from 20% a year ago. Internet sales cost the company $4 less than catalog sales.
Online sales at The Sportsman`s Guide Inc. accounted for 27% of sales in the first quarter up from 20% in the first quarter of last year, the company reported today. First quarter web sales totaled $11.2 million vs. $7.8 million a year ago, growth of 43.4%. Companywide sales grew 7% to $41.6 million in the quarter vs. $38.9 million a year ago.
The outdoor gear retailer reports that Internet sales reached as high as 30% during some weeks in the quarter. Sportsman’s Guide says it benefits from Internet sales because the cost of processing them is significantly less than the cost of processing a traditional catalog transaction: 50 cents vs. $4.50.
Net earnings for the quarter totaled $784,000 vs. net loss of $167,000 as year ago.
"The results of the quarter were due in large part to wider margins, lower selling, general and administrative expenses as a percentage of sales and higher levels of Internet related sales," said Gregory R. Binkley, president and CEO.