Big 5 Sporting Goods Corporation, a leading sporting goods retailer, reported financial results for the fiscal 2014 second quarter ended June 29, 2014.
For the fiscal 2014 second quarter, net sales were $231.2 million, compared to net sales of $239.9 million for the second quarter of fiscal 2013. Same store sales declined 4.9% for the second quarter of fiscal 2014.
For comparison purposes, the Company's same store sales increased 4.4% for the second quarter of fiscal 2013 over the second quarter of the prior year. Sales results for the second quarter of fiscal 2014 reflect a continued reduction in demand for firearms, ammunition and related products, as well as general softness in the overall consumer environment.
Second quarter sales also reflect the small unfavorable impact of the calendar shift of the Easter holiday, during which the Company's stores were closed, out of the first quarter and into the second quarter this year.
Gross profit for the fiscal 2014 second quarter was $75.6 million, compared to $79.7 million in the second quarter of the prior year. The Company's gross profit margin was 32.7% in the fiscal 2014 second quarter versus 33.2% in the second quarter of the prior year, reflecting a decrease in merchandise margins of 19 basis points and an increase in store occupancy costs resulting primarily from the opening of new stores. For comparison purposes, merchandise margins in the second quarter last year increased by 34 basis points versus the second quarter of fiscal 2012.
Selling and administrative expense as a percentage of net sales was 30.8% in the fiscal 2014 second quarter versus 28.8% in the second quarter of last year. Overall selling and administrative expense increased $1.9 million during the quarter from the prior year due primarily to higher employee labor and benefit-related expense, higher store-related expenses reflecting an increased store count, added costs related to the Company's e-commerce initiative and a non-cash pre-tax impairment charge of $0.8 million related to certain underperforming stores.
Net income for the second quarter of fiscal 2014 was $2.5 million, or $0.11 per diluted share, including a non-cash impairment charge of $0.02 per diluted share and expenses associated with the development of the Company's e-commerce platform of $0.01 per diluted share, compared to net income of $6.1 million, or $0.28 per diluted share, for the second quarter of fiscal 2013.
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