Because of new store openings, however, sales grew for the chain. In the fourth quarter of fiscal 2004, sales increased to $237.2 million, an increase of $55.2 million over the fourth quarter of fiscal 2003, total sales for fiscal 2004 were $642.1 million, compared to $489.4 million in fiscal 2003.

"Our performance was not what we hoped," said Mark Baker, president and CEO, during Friday's earnings conference call. "The third and fourth quarters, when we generate over 65% of our sales, and all of our profit, presented significant challenges. The weather finally got good and cold only in mid- and late December, and the level of fourth-quarter sales declined across the board. We finally got the hard freeze our customers needed to go ice fishing over the holidays, but it was too late for all the fall hunting seasons, which were essentially over by then."

In 2004, Gander Mountain opened 19 new stores, including two relocated stores, bringing its total store count to 82. The company entered five new states in 2004, and now operates in 14 states. In 2005, the company plans to open about 20 stores, with new store growth reinforcing current markets according to Baker, including markets the company entered in 2004, such as Texas and Colorado. "Texas is one of the great retail markets in the country for hunting," Baker said. "Houston was one of our top performers in the country."