GT Bicycles Sales, Net Short of Expectations

With poor spring weather hurting domestic sales, GT Bicycles Inc. said Thursday that second-quarter sales and net income won’t meet analysts’ estimates.

In a release issued after the stock market closed, the Santa Ana bicycle maker said it expects sales for the quarter to be about $51 million and net income to be $600,000 to $800,000, or 6 to 8 cents a share, before one-time relocation expenses of about $300,000 to $400,000.

Last year, the company reported second-quarter sales of $44.1 million and net income of $2.2 million, or 22 cents a share.

GT Bicycles said the domestic adult mountain bike market continues to be “challenging” but that early success with its Harley Davidson bike helped offset shortfalls elsewhere. The company also said it continues to see growth internationally, with total overseas sales expected to be up more than 80%, accounting for roughly 29% of sales. It expects to release full quarterly results in August.

The company’s stock price rose 38 cents Wednesday to close at $8.25 a share in Nasdaq trading.