<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d)
of The Securities Exchange Act of 1934
For the Quarterly Period Ended: April 29, 2000
Commission File Number: 000-23515
---------
GART SPORTS COMPANY
-------------------
(Exact name of registrant as specified in its charter)
Delaware 84-1242802
-------- ----------
(State or other jurisdiction of (I.R.S. Employer Identification
incorporation or organization) No.)
1001 Lincoln Avenue, Denver, Colorado 80203
-------------------------------------------
(Address of principal executive offices, including zip code)
Registrant's telephone number, including area code: (303) 861-1122
Indicate by check mark whether the registrant has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or shorter period that the registrant was
required to file such reports).
Yes [X] No [_]
Indicate by check mark whether the registrant has been subject to such
filing requirements for the past 90 days.
Yes [X] No [_]
As of June 2, 2000, there were outstanding 7,353,436 shares of the
registrant's common stock, $.01 par value, and the aggregate market value of the
shares (based upon the closing price on that date of the shares on the NASDAQ
National Market) held by non-affiliates was approximately $ 9,788,000.
<PAGE>
GART SPORTS COMPANY
QUARTERLY PERIOD ENDED APRIL 29, 2000
INDEX
<TABLE>
<CAPTION>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
<S> <C> <C>
Consolidated Balance Sheets.................. 1
Consolidated Statements of Operations........ 2
Consolidated Statements of Stockholders' 3
Equity.......................................
Consolidated Statements of Cash Flows........ 4
Notes to Consolidated Financial Statements... 5
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of
Operations................................... 7
PART II-OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K............. 10
SIGNATURES............................................................ 11
</TABLE>
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
GART SPORTS COMPANY
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands, Except Share and Per Share Amounts)
<TABLE>
<CAPTION>
April 29, January 29,
2000 2000
--------------- --------------
(Unaudited)
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 8,319 $ 7,843
Accounts receivable, net of allowance for doubtful accounts of $265 and $266,
respectively 7,244 6,871
Note Receivable 170 165
Inventories 257,463 240,891
Prepaid expenses and other assets 6,830 6,722
Deferred income taxes 1,533 1,533
--------------- --------------
Total current assets 281,559 264,025
--------------- --------------
Property and equipment, net 59,923 60,441
Favorable leases acquired, net 12,017 12,536
Asset held for sale 1,688 1,729
Other assets, net of accumulated amortization of $871 and $810, respectively 5,460 5,517
--------------- --------------
Total assets $ 360,647 $ 344,248
=============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 117,694 $ 127,410
Current portion of capital lease obligations 428 417
Accrued expenses and other current liabilities 29,971 31,345
--------------- --------------
Total current liabilities 148,093 159,172
Long-term debt 132,800 105,900
Capital lease obligations, less current portion 2,165 2,276
Deferred rent 5,654 5,292
Deferred income taxes 5,714 5,714
--------------- --------------
Total liabilities 294,426 278,354
--------------- --------------
Commitments and contingencies
Stockholders' equity:
Preferred stock, $.01 par value. 3,000,000 shares authorized; none issued -- --
Common stock, $.01 par value. 22,000,000 shares authorized;
7,704,817 and 7,694,617 shares issued and 7,480,978 and 7,507,078
shares outstanding at April 29, 2000 and January 29, 2000, respectively 77 77
Additional paid-in capital 55,943 55,990
Unamortized restricted stock compensation (1,583) (1,770)
Accumulated other comprehensive loss (554) (574)
Retained earnings 13,803 13,393
--------------- --------------
67,686 67,116
Treasury stock, 223,839 and 187,539 common shares, respectively, at cost (1,465) (1,222)
--------------- --------------
Total stockholders' equity 66,221 65,894
--------------- --------------
Total liabilities and stockholders' equity $ 360,647 $ 344,248
=============== ==============
</TABLE>
See accompanying notes to consolidated financial statements.
1
<PAGE>
GART SPORTS COMPANY
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, Dollars In Thousands, Except Share and Per Share Amounts)
<TABLE>
<CAPTION>
Thirteen weeks ended
--------------------------------------------
April 29, May 1,
2000 1999
------------------- -------------------
<S> <C> <C>
Net sales $ 165,749 $ 151,933
Cost of goods sold, buying, distribution and
occupancy 126,439 116,129
------------------- -------------------
Gross profit 39,310 35,804
Operating expenses 36,159 33,935
------------------- -------------------
Operating income 3,151 1,869
Non operating income (expense):
Interest expense, net (2,590) (2,412)
Other income 111 363
------------------- -------------------
Income (loss) before income taxes 672 (180)
Income tax benefit (expense) (262) 70
------------------- -------------------
Net income (loss) $ 410 $ (110)
=================== ===================
Earnings (loss) per share:
Basic $ 0.05 $ (0.01)
=================== ===================
Diluted $ 0.05 $ (0.01)
=================== ===================
Weighted average shares of common
stock outstanding:
Basic 7,477,130 7,652,764
=================== ===================
Diluted 7,547,103 7,652,764
=================== ===================
</TABLE>
See accompanying notes to consolidated financial statements.
2
<PAGE>
GART SPORTS COMPANY
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(Unaudited, Dollars in Thousands)
<TABLE>
<CAPTION>
Accumulated
Additional Unamortized other Total
Common paid-in restricted stock comprehensive Retained Comprehensive Treasury Stockholders'
stock capital compensation loss earnings income stock equity
------ ----------- --------------- ------------- -------- ------------- --------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
BALANCES AT JANUARY 29,
2000 $ 77 $ 55,990 $ (1,770) $ (574) $ 13,393 $ (1,222) $ 65,894
------ ----------- --------------- ------------- -------- --------- -------------
Net income -- -- -- -- 410 $ 410 -- 410
Unrealized gain on equity
securities -- -- -- 20 -- 20 -- 20
-------------
Comprehensive income $ 430
=============
Purchase of treasury stock -- -- -- -- -- (243) (243)
Exercise of stock options -- 52 -- -- -- -- 52
Cancellation of restricted
stock -- (99) 99 -- -- -- --
Amortization of restricted
stock -- -- 88 -- -- -- 88
------ ----------- --------------- ------------- -------- --------- -------------
BALANCES AT APRIL 29, 2000 $ 77 $ 55,943 $ (1,583) $ (554) $ 13,803 $ (1,465) $ 66,221
====== =========== =============== ============= ======== ========= =============
</TABLE>
See accompanying notes to consolidated financial statements.
3
<PAGE>
GART SPORTS COMPANY
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, Dollars In Thousands)
<TABLE>
<CAPTION>
Thirteen weeks ended
-------------------------------------------------
April 29, May 1,
2000 1999
--------------------- ----------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S> <C> <C>
Net income (loss) $ 410 $ (110)
Adjustments to reconcile net income (loss)
to net cash used in operating activities:
Depreciation and amortization 3,826 3,298
Gain on sale of assets -- (185)
Increase in deferred rent 362 363
Changes in operating assets and liabilities:
Accounts receivable, net (373) 453
Inventories (16,572) (31,223)
Prepaid expenses and other assets (88) (215)
Other assets (72) (20)
Accounts payable (9,716) (7,664)
Accrued expenses and other current
liabilities (1,374) (4,563)
--------------------- ----------------------
Net cash used in operating activities (23,597) (39,866)
--------------------- ----------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Sale of marketable securities -- 2,979
Purchases of property and equipment (2,574) (3,239)
--------------------- ----------------------
Net cash used in investing activities (2,574) (260)
--------------------- ----------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from long-term debt 69,903 79,154
Principal payments on long-term debt (43,003) (41,950)
Principal payments on capital lease
obligations (100) (78)
Purchase of treasury stock (243) --
Payment of notes receivable 38 43
Proceeds from the sale of common stock
under option plans 52 --
--------------------- ----------------------
Net cash provided by financing activities 26,647 37,169
--------------------- ----------------------
Increase (decrease) in cash and cash equivalents 476 (2,957)
Cash and cash equivalents at beginning of period 7,843 10,779
--------------------- ----------------------
Cash and cash equivalents at end of period $ 8,319 $ 7,822
===================== ======================
Supplemental disclosures of cash flow information:
Cash paid during the period for interest, net $ 2,603 $ 2,904
===================== ======================
Cash received during the period for income taxes $ (400) --
===================== ======================
</TABLE>
See accompanying notes to consolidated financial statements.
4
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements do not include
all information and footnotes necessary for the annual presentation of
financial position, results of operations and cash flows in conformity with
generally accepted accounting principles, and should be read in conjunction
with the Annual Report of the Company on Form 10-K for its year ended January
29, 2000. In the opinion of management, all adjustments (consisting of normal
recurring adjustments) necessary for a fair presentation of the statement of
financial position and the results of operations for the interim periods have
been included. The results for the thirteen week period April 29, 2000 are
not necessarily indicative of the results to be expected for the full year.
Reclassifications
Certain prior period amounts have been reclassified to conform to the current
period presentation.
2. EARNINGS (LOSS) PER SHARE
The following table sets forth the computations of basic and diluted earnings
(loss) per share:
<TABLE>
<CAPTION>
Thirteen weeks ended
------------------------------------------
April 29, May 1,
2000 1999
---------------- ---------------
<S> <C> <C>
Net income (loss) $ 410,000 $ (110,000)
Weighted average shares of common stock
outstanding - basic 7,477,130 7,652,764
---------------- ---------------
Basic earnings (loss) per share $ 0.05 $ (0.01)
=============== ===============
Number of shares used for diluted earnings
per share:
Weighted average shares of common stock
outstanding - basic 7,477,130 7,652,764
Dilutive securities - stock options and restricted 69,973 --
stock --------------- ----------------
Weighted average shares of common stock
outstanding - diluted 7,547,103 7,652,764
--------------- ----------------
Diluted earnings (loss) per share $ 0.05 $ (0.01)
================ ================
</TABLE>
3. CONTINGENCIES
Tax Contingency
Under the terms of the Company's tax sharing agreement with its former
parent, the Company is responsible for its share, on a separate return basis,
of any tax payments associated with proposed deficiencies or adjustments, and
related interest and penalties charged to the controlled group which may
arise as a result of an assessment by the IRS.
On July 24, 1997, the IRS proposed adjustments to the Company's and former
parent's 1992 and 1993 federal income tax returns in conjunction with the
former parent's IRS examination. The proposed adjustments related to the
manner in which LIFO inventories were characterized on such returns. The
Company recorded approximately $9,700,000 as a long-term net deferred tax
liability for the tax effect of the LIFO inventory basis difference. The IRS
has asserted that this basis difference should have been reflected in taxable
income in 1992 and 1993. The Company has taken the position that the
inventory acquired in connection with the acquisition of its former parent
was appropriately allocated to its inventory pools. The IRS has asserted the
inventory was acquired at a bargain purchase price and should be allocated to
a separate pool and liquidated as inventory turns.
5
<PAGE>
Based on management's discussions with the Company's former parent, the
Company believes the potential accelerated tax liability, which could have a
negative effect on liquidity in the near term, ranges from approximately
$2,500,000 to $9,700,000. The range of loss from possible assessed interest
charges resulting from the proposed adjustments range from approximately
$580,000 to $3,300,000. The Company has accrued $1,100,000 in the
consolidated financial statements. No penalties are expected to be assessed
relating to this matter. At April 29, 2000, the LIFO inventory and other
associated temporary differences continue to be classified as long-term net
deferred tax liabilities since final settlement terms have not been
negotiated.
The Company has reviewed the various matters that are under consideration and
believes that it has adequately provided for any liability that may result
from this matter. In the opinion of management, any additional liability
beyond the amounts recorded that may arise as a result of the IRS examination
will not have a material adverse effect on the Company's consolidated
financial condition, results of operations, or liquidity.
In addition, the Company is currently under examination for the fiscal tax
year ended September 1997. No adjustments have been proposed at this time.
Legal Proceedings
The Company is a party to various legal proceedings and claims arising in the
ordinary course of business. Management believes that the ultimate
disposition of these matters will not have a material adverse effect on the
Company's consolidated financial condition, results of operations or
liquidity.
6
<PAGE>
ITEM 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis should be read in conjunction with the
Company's consolidated financial statements and notes thereto included elsewhere
within this report and the Annual Report of the Company on Form 10-K for its
year ended January 29, 2000.
The Company is a leading retailer of sporting goods in the midwest and
western United States. Given the economic characteristics of the store formats,
the similar nature of the products sold, the type of customer and method of
distribution, the operations of the Company are aggregated in one reportable
segment.
The Company uses a 52-53 week fiscal reporting year ending on the Saturday
closest to the end of January.
RESULTS OF OPERATIONS
The following table sets forth the Company's consolidated statement of
operations data as a percentage of net sales and the number of stores open at
the end of each period for the periods indicated (dollars rounded to millions):
<TABLE>
<CAPTION>
Thirteen weeks ended
--------------------------------------------------------------------------
April 29, 2000 May 1, 1999
Dollars % Dollars %
---------------- ---------- ----------------- ------------
<S> <C> <C> <C> <C>
Net sales $ 165.7 100.0% 151.9 100.0%
Cost of goods sold, buying,
distribution and occupancy (126.4) (76.3) (116.1) (76.4)
---------------- -------- ----------------- -------
Gross profit 39.3 23.7 35.8 23.6
Operating expenses (36.1) (21.8) (34.0) (22.4)
---------------- -------- ----------------- -------
Operating income (loss) 3.2 1.9 1.8 1.2
Interest expense, net (2.6) (1.6) (2.4) (1.6)
Other income 0.1 0.1 0.4 0.2
---------------- -------- ----------------- -------
Income (loss) before
income taxes 0.7 0.4 (0.2) (0.2)
Income tax benefit (expense) (0.3) (0.2) 0.1 0.1
---------------- -------- ----------------- -------
Net income (loss) $ 0.4 0.2% $ (0.1) (0.1)%
================ ======== ================ =======
Number of stores at end of period 126 124
================ ================
</TABLE>
THIRTEEN WEEKS ENDED APRIL 29, 2000 COMPARED TO THIRTEEN WEEKS ENDED MAY 1, 1999
Net Sales. Net sales for the thirteen weeks ended April 29, 2000 increased
$13.8 million or 9.1%, to $165.7 million compared to $151.9 million in the year
ago quarter. Comparable store sales increased 4.3% for the quarter, primarily
due to improved sales in the hardgood and outdoor categories, including winter
sports products, as well as our apparel categories. Hardgood and outdoor
categories improved as a result of improved selection and inventory levels
throughout all stores coupled with focused marketing efforts on these products.
Apparel sales were positively impacted by our store remodeling program and the
introduction of new apparel fixtures and signage.
Gross Profit. Gross profit for the thirteen weeks ended April 29, 2000 was
$39.3 million, or 23.7% of net sales, as compared to $35.8 million, or 23.6% of
net sales, for the thirteen weeks ended May 1, 1999. The increase is due
primarily to improved buying disciplines and continued progress in enhancing the
replenishment and allocation of merchandise to the stores.
Operating Expenses. Operating expenses for the thirteen weeks ended April
29, 2000 were $36.1 million, or 21.8% of net sales, compared to $34.0 million,
or 22.4% of net sales, for the period ended May 1, 1999. Operating expenses
decreased as a percent of sales primarily due to reduced store payroll costs as
a result of improved management of staffing levels at the stores along with
improved sales performance driven by increased staff training programs. The
increase in operating expense dollars is primarily attributable to the increase
in the number of stores over the prior year, particularly the increase in the
number of superstores.
7
<PAGE>
Operating Income. As a result of the factors described above, the Company's
operating income increased 69.0% to $3.2 million or 1.9% of net sales for the
thirteen weeks ended April 29, 2000 compared to $1.8 million or 1.2% of net
sales for the thirteen weeks ended May 1, 1999.
Interest Expense, Net. Interest expense, net for the thirteen weeks ended
April 29, 2000 increased to $2.6 million, or 1.6% of net sales, from $2.4
million, or 1.6% of net sales, in the thirteen weeks ended May 1, 1999. The
increase is primarily due to an increase in the effective borrowing rate as a
result of rising interest rates over the past year, partially offset by a
decrease in average interest bearing debt for the period.
Other Income. Other income was $0.1 million for the thirteen weeks ended
April 29, 2000 compared to $0.4 million for the thirteen weeks ended May 1,
1999. The decrease is primarily attributable to a gain realized in the prior
year as a result of the sale of marketable securities.
Income Taxes. The Company's income tax expense for the thirteen weeks ended
April 29, 2000 was $0.3 million compared to an income tax benefit of $0.1
million for the thirteen weeks ended May 1, 1999. The Company's estimated
effective tax rate remained the same at 39.0% for both periods.
LIQUIDITY AND CAPITAL RESOURCES
The Company's primary capital requirements are for inventory, capital
improvements, and pre-opening expenses to support the Company's expansion plans,
as well as for various investments in store remodeling, store fixtures and
ongoing infrastructure improvements.
<TABLE>
<CAPTION>
Cash Flow Analysis
Thirteen weeks ended
-------------------------------------
April 29, May 1,
2000 1999
-------------- ------------
<S> <C> <C>
Cash used in operating activities $(23,597) $(39,866)
Cash used in investing activities (2,574) (260)
Cash provided by financing activities 26,647 37,169
Capital expenditures $ 2,574 $ 3,239
Long-term debt (at end of period) 132,800 137,204
Working capital (at end of period) 133,466 133,346
Current ratio (at end of period) 1.90 1.92
Debt to equity ratio (at end of period) 2.01 2.11
</TABLE>
Cash used in operating activities in the first quarter of fiscal 2000 was
primarily the result of inventory purchases and payments of accounts payable and
accrued expenses. These cash uses were partially offset by cash generated by
net income adjusted for non-cash charges in the first quarter of fiscal 2000.
Cash used in investing activities in the first quarter of fiscal 2000 was
for capital expenditures. These expenditures were primarily for store
remodeling, store fixtures, and the purchase or enhancement of certain
information systems.
Cash provided by financing activities in the first quarter of fiscal 2000
primarily represents net proceeds from borrowings on the Company's revolving
line of credit, only slightly offset by purchases of treasury stock and payments
of capital lease obligations.
The Company's liquidity and capital needs have been met by cash from
operations and borrowings under a revolving line of credit with CIT/Business
Credit, Inc. ("CIT" The long-term debt currently consists of the Credit
Agreement, which allows the Company to borrow up to 70% of its eligible
inventories (as defined in the Credit Agreement) during the year and up to 75%
of its eligible inventories for any consecutive 90 day period in a fiscal year.
Borrowings are limited to the lesser of $175 million or the amount
8
<PAGE>
calculated in accordance with the borrowing base, and are secured by
substantially all inventories, trade receivables and intangible assets. The
lenders may not demand repayment of principal absent an occurrence of default
under the Credit Agreement prior to January 9, 2003. The Credit Agreement
contains certain covenants, including financial covenants that require the
Company to maintain a specified minimum level of net worth at all times and
restrict the Company's ability to pay dividends. Loan interest is payable
monthly at Chase Manhattan Bank's prime rate plus a margin rate that cannot
exceed 0.25% or, at the option of the Company, at Chase Manhattan Bank's LIBOR
rate plus a margin that cannot exceed 1.75%. The margin rate on prime and LIBOR
borrowings was reduced during the first quarter of fiscal 2000, as certain
earnings levels were achieved, to 0.0% and 1.50%, respectively. There was $132.8
million outstanding under the Credit Agreement at April 29, 2000, and $39.1
million was available for borrowing. The increase in long-term debt since fiscal
year end 1999 is primarily attributable to seasonal purchases of inventory,
capital expenditures, and payments of accounts payable.
The Internal Revenue Service has proposed adjustments to the 1992 and 1993
consolidated federal income tax returns of the Company and its former parent,
now Thrifty PayLess Holdings, Inc., a subsidiary of RiteAid Corporation, due to
the manner in which LIFO inventories were characterized on such returns. Based
on management's discussion with the Company's former parent, the Company
believes the potential accelerated tax liability, which could have a negative
effect on liquidity in the near term, ranges from approximately $2,500,000 to
$9,700,000. See note 3 to the Consolidated Financial Statements.
Capital expenditures are projected to be approximately $12.0 million in
fiscal 2000. These capital expenditures will be for store remodeling, store
fixtures, information systems, distribution center facilities, and ski rental
equipment. The Company leases all of its store locations and intends to continue
to finance its new stores with long-term operating leases. Based upon historical
data, newly constructed superstores require a cash investment of approximately
$1.8 million for a 40,000 square foot store and $1.5 million for a 33,000 square
foot store. Superstores constructed in existing retail space historically have
required capital investments of approximately $700,000 in leasehold improvements
per location. The level of capital improvements will be affected by the mix of
new construction versus renovation of existing retail space.
The Company believes that cash generated from operations, combined with
funds available under the Credit Agreement, will be sufficient to fund projected
capital expenditures and other working capital requirements through fiscal 2000.
The Company intends to utilize the Credit Agreement to meet seasonal
fluctuations in cash flow requirements.
SEASONALITY AND INFLATION
The fourth quarter has historically been the strongest quarter for the
Company. The Company believes that two primary factors contribute to this
seasonality. First, sales of cold weather sporting goods, including sales of ski
and snowboard merchandise during the quarter, which corresponds with much of the
ski and snowboard season. Second, holiday sales contribute significantly to the
Company's operating results. As a result of these factors, inventory levels,
which gradually increase beginning in April, generally reach their peak in
November and then decline to their lowest level following the December holiday
season. Any decrease in sales for the fourth quarter, whether due to a slow
holiday selling season, poor snowfall in ski areas near the Company's markets or
otherwise, could have a material adverse effect on the Company's business,
financial condition and operating results for the entire fiscal year.
Although the operations of the Company are influenced by general economic
conditions, the Company does not believe that inflation has a material impact on
the Company's results of operations. The Company believes that it is generally
able to pass along any inflationary increases in costs to its customer.
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
The information discussed herein includes "forward-looking statements"
within the meaning of the federal securities laws. Although the Company believes
that the expectations reflected in such forward looking statements are
reasonable, the Company's actual results could differ materially as a result of
certain factors, including, but not limited to: the Company's ability to manage
its expansion efforts in existing and new markets, availability of suitable new
store locations at acceptable terms, general economic conditions, and retail and
sporting goods business conditions, specifically, availability of merchandise to
meet fluctuating consumer demands, fluctuating sales margins, increasing
competition in sporting goods and apparel retailing, as well as other factors
described from time to time in the Company's periodic reports, including the
Annual Report of the Company on Form 10-K for its year ended January 29, 2000,
filed with the Securities and Exchange Commission.
9
<PAGE>
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
A. EXHIBITS.
Exhibit 27.1 - Financial Data Schedule
B. REPORTS ON FORM 8-K
The Company filed a Current Report on Form 8-K with the Commission
dated May 16, 2000 to report, under Item 4, that the registrant engaged
Deloitte & Touche LLP as its independent auditor for the fiscal year
ended February 3, 2001 and concurrently dismissed its former
independent auditor, KPMG LLP.
10
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on June 9, 2000 on its
behalf by the undersigned thereunto duly authorized.
GART SPORTS COMPANY
By: /s/ JOHN DOUGLAS MORTON
------------------------------------------
John Douglas Morton,
Chairman of the Board of Directors,
President and Chief Executive Officer
By: /s/ THOMAS T. HENDRICKSON
------------------------------------------
Thomas T. Hendrickson,
Executive Vice President, Chief Financial
Officer and Treasurer
11
