SPORT CHALET EARNINGS WIN 1, LOSE 1 COMPANY MANAGES SOME SUCCESS AS PROFITS FOR SECOND QUARTER DOWN.

Byline: Evan Pondel Staff Writer

LA CANADA FLINTRIDGE - Sport Chalet was thrown a few curves during the second quarter, but the company managed some success by focusing on clutch hits.

``The company is expanding and we're trying to just focus on doing the little things better,'' said Howard Kaminsky, chief financial officer of Sport Chalet.

Sport Chalet was just shy of analysts' expectations in the second quarter, as the athletic superstore's profits were down about 28 percent in the period ended Sept. 30.

Analysts surveyed by Thomson Financial/First Call projected profits of 22 cents a share; however, the company reported earnings of 19 cents a share, vs. 27 cents a share a year ago. The company had net income of $1.3 million, compared with $1.8 million in last year's second quarter.

``I was still pleasantly surprised by their earnings. They did a good job executing inventory,'' said Joan Bogucki-Storms, an analyst with Wedbush Morgan Securities in Los Angeles.

Among the basketballs and foosballs, slumping sales of scooters offset the percentage gains the La Canada Flintridge-based company saw last year at this time. Still, the company posted revenue of $54.6 million in the second quarter, compared with revenue of $53.7 million in the same period a year ago.

``All things considered, we've done alright,'' Kaminsky said.

Gearing up for snowfall, the company hopes to muster strong sales with snowboard and ski rentals. Kaminsky said snowboard rentals tend to dominate in the Los Angeles area, as the local mountains motivate winter enthusiasts.

Currently, Heely's, which resemble a tennis shoe with a little wheel attached to the heel, is another hot-selling item for the sporting goods store.

``I've never tried it personally, but they seem like a lot of fun and they're real popular right now,'' Kaminsky said.

Aside from innovative sports gadgetry, the company maintains its market niche by appealing to a wealthier demographic. Bogucki-Storms said Sports Chalet is able to compete with companies such as Big 5 Sporting Goods because of the quality products it sells.

``Sport Chalet carries more upper-end items, building a more upper-end clientele,'' she said.

However, looking ahead, Bogucki-Storms said the company will have to take an aggressive marketing stance to stay afloat in an ailing economy.

Along with a forthright advertising campaign, the company has made several internal moves. In August, Craig Levra, Sport Chalet's 42-year-old president and chief executive officer, was named chairman of the board.

``He's very enthusiastic and has hired a number of talented people into the organization,'' Bogucki-Storms said.

Just after Christmas, the company will move its distribution headquarters to Ontario from Montclair. Sport Chalet is also opening a new store in Henderson, Nev., this weekend and a store at South Coast Plaza around Thanksgiving.

As of Tuesday's close on the Nasdaq, Sport Chalet shares advanced 5 cents, or 0.62 percent, to close at $8.15.

CAPTION(S):

2 photos

Photo:

(1 -- color) Mike Turano, Sport Chalet's shoe department manager, waits for customers at the company's Porter Ranch location.

(2 -- color) Dick Hebert, of Medford, Ore., shops for a fishing pole at the Porter Ranch Sport Chalet.

Hans Gutknecht/Staff Photographer