Sports & Recreation Inc. reported a "sharp drop" in fourth
quarter earnings yesterday and announced executive changes. CEO
Stephen Bebis, who was brought in last month to "put the 84-store
sporting goods chain back on a more profitable track," has named
a new management team. Bebis noted it would be 12 to 18 months
before the company starts seeing positive results. Vice Chair
Richard Welch was dismissed. Also gone are COO Thomas Wirkus and
CFO Stanley Skarda. They are replaced by former Wilson Sporting
Goods CFO Richard Wenz, along with Bebis associates Robert
Wittman and Michael Henning (Mark Albright, ST. PETERSBURG TIMES,
3/15). Wall Street "seemed pleased" with the changes, as stock
closed up $.25 to $7.125 a share. Fourth quarter earnings
dropped to $986,000 or $.05 a share, down from $6.7M or $.33 a
share last year. The chain will also reduce the number of
outlets it will open this year to between six and eight (Lisa
Backman, TAMPA TRIBUNE, 3/15).
NIKE STRONG: Nike reported third quarter earnings up 19% to
$113.7M or 78 cents a share, "slightly above analysts
expectations, while orders surged 38% as overseas appeal for the
brand grows." The results ended February 29 compare to net
income of $95.3M or $.65 last year. International revenues
increased 42% (WALL STREET JOURNAL, 3/15).
