Financial Reports: Redcats USA, Office Depot, PC Connection

Sportsman’s Guide Saves First Quarter for Redcats USA
First-quarter sales at New York-based multititle cataloger Redcats USA rose 5.6%, to 392.9 million up from $370.8 million after the first quarter of 2006. First-quarter sales for the Redcats Group, however, fell 5.1%, to $1.42 billion from $1.45 billion. According to a release, South St. Paul, MN-based The Sportsman’s Guide — which Redcats USA acquired in May 2006 — posted strong numbers in the first quarter. But, the release stated, “regarding other brands which are in the process of being repositioned, Redcats deliberately reduced its catalog circulation and cut back on promotional activities, resulting in lower revenues. Redcats Group pursued the strong growth of its Internet activities, with on-line sales accounting for 39% of mail order sales in the first quarter of 2007.”

International Sales Up for Office Depot
First-quarter sales for Delray Beach, FL-based Office Depot increased 7%, to $4.1 billion up from $3.85 billion last year. Net income for the three-month period ended March 31 rose 20% to $156 million up from $130 million a year earlier. First-quarter retail sales in North America were up 3%, to $1.8 billion, while North American same-store sales decreased 3%. International sales increased 21%. The North American Business Solutions Division, which includes catalogs, increased 3%.

PC Connection Doubles Third-Quarter Net Income
Third-quarter sales at Merrimack, NH-based PC Connection increased 4.7%, to $398.2 million up from $380.5 million for the same period in 2006. For the three-month period ended March 31, net income doubled to $3.4 million, from $1.7 million. PC Connection chairman/CEO Patricia Gallup in a statement credited part of the company’s growth to strength in the small- and medium-sized business (SMB) segment.