For its fourth fiscal quarter, Gander Mountain expects total revenue to increase about 31% to $236 million to $241 million, reflecting the addition of new stores, but there will be a comp-store sales decrease of about 6%. Comp-store sales increased 12.2% in the fourth quarter of fiscal 2003.

"Although we're disappointed in not achieving our financial targets, we accomplished much in 2004 and look forward to improved performance and profitable growth in 2005," said Mark Baker, president and CEO. In revising its outlook, the company cited the impact of unseasonably warm weather into mid-December, which ended just before Christmas with a major cold front across much of the country.

Despite improvements in sales after the weather turned colder, however, sales still didn't meet the company's expectations. Gander Mountain then increased post-holiday promotional activity to reduce inventories to comparable year-end levels, which it says will have a negative affect on the current quarter's gross margin rate.