Circulation Boosts Sportsman's Guide

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Sales at The Sportsman's Guide Inc., South St. Paul, MN, jumped 21.6 percent to $28.3 million for the second quarter ended June 28, from $23.2 million for the year-ago period largely because of an increase in circulation.


Net earnings rose 12.9 percent to $79,000 from $70,000 for last year's second quarter.


Company officials credited a 43 percent increase in catalog circulation in the first half of the year with helping to increase sales, but noted that the increase was offset partially by lower customer response rates. The majority of the company's sales historically occur during its third and fourth quarters because of the emphasis on hunting merchandise and winter apparel and gifts in the company's catalogs.


"Through the first half of the year, we have continued to see our product margins improve and our customer base and buyers' clubs membership expand," said Gary Olen, chairman and chief operating officer. "These trends should assist the company in achieving strong sales and earnings growth for the second half of this year."
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