Home / Knowledge / News / Apparel/Garments / Sales trends in Q2 to-date remain challenging for Big 5
Sales trends in Q2 to-date remain challenging for Big 5
04
May '11
Big 5 Sporting Goods Corporation, a leading sporting goods retailer, reported financial results for the fiscal 2011 first quarter ended April 3, 2011.

For the fiscal 2011 first quarter, net sales were $221.1 million, compared to net sales of $218.5 million for the first quarter of fiscal 2010. Same store sales decreased 0.9% for the first quarter of 2011 versus the comparable period in the prior year. This compares to a same store sales increase of 2.4% in the first quarter of 2010. Sales results in fiscal 2011 reflect a benefit over the prior year from the calendar shift of the Easter holiday, during which the Company's stores are closed, out of the first quarter and into the second quarter this year.

Gross profit for the fiscal 2011 first quarter was $72.2 million, compared to $71.6 million in the first quarter of the prior year. The Company's gross profit margin was 32.6% in the fiscal 2011 first quarter versus 32.7% in the first quarter of the prior year. The slight gross profit margin decrease reflects an increase in store occupancy costs related to new store openings, partially offset by an increase in merchandise margins of 12 basis points.

Selling and administrative expense as a percentage of net sales was 30.4% in the fiscal 2011 first quarter versus 28.8% in the first quarter of the prior year. Overall selling and administrative expense increased $4.2 million during the quarter from the prior year due mainly to an increase in store-related expenses, which reflected a higher store count and increased employee benefit costs, as well as increased advertising expense.

Net income for the first quarter of fiscal 2011 was $2.8 million, or $0.13 per diluted share, compared to net income of $5.0 million, or $0.23 per diluted share, for the first quarter of fiscal 2010.

"Our sales results for the first quarter were at the lower end of our guidance range and reflect continued macroeconomic weakness in our markets," said Steven G. Miller, the Company's Chairman, President and Chief Executive Officer. "Sales were negatively impacted by a decrease in customer traffic, as we believe many of our consumers reduced purchases of discretionary items in response to the challenging economic environment, characterized by rising gas prices and high unemployment. Earnings were lower than our previous expectations primarily due to higher than anticipated expenses associated with employee benefits, including workers' compensation, health and welfare and California unemployment taxes."

Mr. Miller continued, "Sales trends in the second quarter to-date remain challenging as we believe that our consumer continues to be highly sensitive to the adverse economic conditions prevalent in our markets, which are concentrated in the western United States. We continue to look at all aspects of our business in order to drive sales and earnings. We are taking steps to further enhance our merchandise, pricing, and promotionalstrategies, while remaining focused on operating as efficiently as possible. We believe that our continued emphasis on improving the execution of our overall business model will enable us to weather the current environment and position us well when the consumer climate improves."

Must ReadView All

Courtesy: UPM Raflatac

Apparel/Garments | On 17th Jan 2017

New residue free textile label adhesive from UPM Raflatac

Producer of self adhesive label materials UPM Raflatac, has...

Courtesy: Authentic Brands Group

Apparel/Garments | On 17th Jan 2017

Teen retailer Aéropostale reopens 500 stores in US

Teen apparel retailer Aéropostale has reopened 500 stores in the US,...

Courtesy: Centric Software

Information Technology | On 17th Jan 2017

Centric releases version 6.0 of PLM solution

Centric Software, the leading PLM solution for fashion, retail,...

Interviews View All

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search