INDIANAPOLIS — At a time of low consumer confidence and a stagnant retail sector, Galyan's Trading Co. isn't missing a beat as it sticks to its ambitious growth plans five months after going public.
The economic downturn and Sept. 11 terrorist attacks that hurt many of the nation's retailers seem to have left the sporting goods and outdoor equipment retailer unscathed.
"We've seen strong performance from our new stores and in an environment that has been tough," said chairman and chief executive Robert B. Mang, who presented a relatively upbeat earnings report Wednesday.
Mang said Galyan's is pushing ahead with plans to add seven more stores next year. "We're more bullish than ever," he said.
In the last three months, Galyan's added three stores in Novi, Mich., Louisville, Ky., and Salt Lake City. The additions give Galyan's 26 stores in 14 states, including four in the Indianapolis area and one in Plainfield, the Indianapolis suburb where Galyan's is headquartered.
Galyan's newer stores, including the one in Salt Lake's just-opened Gateway development, feature two-story simulated rock walls that allow climbers to enjoy a vertical adventure without heading to the hills. In the golf section, enthusiasts use hitting nets to try out equipment before hitting the links.
"There's a 'wow factor' " to Galyan's stores, Mang said. "We encourage product tryouts."
It's a big departure from the early days. The chain began in Indianapolis in 1946, when Albert and Naomi Galyan opened a grocery store with a few hardware and sports-related products.
The focus changed over the years to emphasize sporting goods. But the company didn't experience rapid growth until 1995, when Columbus, Ohio-based The Limited Inc. purchased Galyan's, adding it to a list of retail properties that includes Victoria's Secret and Bath & Body Works.
Galyan's management joined the private investment firm Freeman Spogli & Co. in 1999 to buy a majority ownership from The Limited.
This past June, Galyan's became a publicly traded company with an initial offering of 6.5 million shares at $19 a share.
The offering enabled Galyan's to pay off debt and position itself for further growth, Mang said.
Galyan's stock closed at $13.95 Wednesday on the Nasdaq exchange, down 34 cents after the company's morning release of third-quarter earnings. But the stock had traded at less than $11 a week earlier.
The company took a $168,000 loss, or 1 cent per share, despite net sales of $104.9 million, or 12.9 percent higher than the same quarter last year. Comparable store sales increased 2.2 percent, primarily because of healthy sales for hunting gear, outerwear and footwear.
Galyan's is pleased with the results, especially considering the impact of the terrorist attacks, the cost of opening new stores and the fact that third-quarter sales are typically modest, Mang said.
The 1,700-employee company says it is well-positioned to weather the current retail slump because it has a more diverse sales line than competitors that focus purely on outdoors equipment.
Galyan's stores have as many as 40 separate departments selling clothing, shoes and gear for everything from paintball to bowling to climbing.
"We're a group of specialty stores under one roof," Mang said. "We're a multi-category big-box operator."
Galyan's has signed leases for stores opening next year in Lansing, Mich.; Henderson, Nev.; Niles, Ill.; Geneva, Ill.; Littleton, Colo.; and Fort Worth, Texas. A lease for a seventh planned store has not been signed.