Forzani Group Ltd., Canada's largest sporting goods retailer, reported weaker profits for its Q3 on Friday due to unseasonably warm weather and lower retail prices.

The Calgary-based company reported a profit of $7.5 million, or 23 cents a diluted share, compared with $10 million, or 31 cents a share, in the same period a year ago.

Revenues rose a modest 2.6 per cent, to $250.2 million from $243.9 million.

Same-store sales, which includes only those locations open at least a year, fell by 0.9 per cent. A 2.3-per-cent decline at Forzani's corporate stores offset a 2.6-per-cent increase at its franchise outlets.

On the year-to-date, same-store sales are up by 0.3 per cent.

"Our third quarter added to what has been a difficult year for the company," CEO Bob Sartor said in a statement.

"Unusual weather patterns and other external factors such as SARS, blackouts in Ontario and forest fires in Alberta and B.C. have had an impact on our company, as has been the case for many retailers."

Warmer than usual weather in October weakened sales of winter clothing and sporting equipment. The quarter was also pinched by Forzani's decision to abandon much of its casual clothing business.

"This decision, sparked by our belief that the casual clothing segment of retail will continue to experience intense pressure in the future, resulted in significant markdowns of our casual clothing that negatively affected both our corporate store sales and margins in each of the last two quarters," Sartor said.

The company cut its full-year earnings forecast to a range of $1.01 to $1.05 a diluted share from $1.35.

Forzani's banners include Sport Chek, Coast Mountain Sports and Sport Mart.