News Flash

Big 5 Sporting Goods posts strong earnings performance

04 May '07

4 min read

Second quarter earnings guidance reflects lower than anticipated sales beginning in the second half of April and, compared to the prior year, reflects lower distribution center expenses offset by a reduction in inventory cost capitalization and higher administrative expenses to support the Company's financial reporting initiatives.

The Company continues to expect full-year same store sales growth in the low single-digit range and full-year earnings per diluted share in the range of $1.47 to $1.57.

During the fiscal 2007 first quarter, the Company opened three new stores, including one relocation, and closed an additional store in preparation for its relocation during the second quarter. The Company operated 344 stores at the end of the first quarter and anticipates opening four new stores during the fiscal 2007 second quarter. The Company anticipates opening approximately 20 new stores, net of relocations, during fiscal 2007.

"We are pleased to have begun the year with a very strong earnings performance," said Steven G. Miller, the Company's Chairman, President and Chief Executive Officer. "We achieved sales and product margin gains in each of our three major merchandise categories of footwear, hard goods and apparel, while comping against our strongest quarterly same store sales performance of last year. Product margins benefited from strong sales of winter-related products early in the quarter, when margins are highest, compared to last year, when we realized very strong winter product sales late in the quarter."

Commenting on second quarter sales trends, Mr. Miller added, "While sales over the first two weeks of the second quarter were positive, they began to soften in the second half of April. We are continuing to evaluate the factors that may be contributing to these lower than anticipated sales levels. The back half of the second quarter, which includes Memorial Day, Father's Day and pre-Fourth of July sales, is by far the most important part of the quarter. We believe we are well positioned with a strong merchandise and promotional plan for this period."

The Company will host a conference call and audio webcast at 2:00 p.m. Pacific (5:00 p.m. EDT) to discuss financial results for the fiscal 2007 first quarter. The webcast will be available and archived for 30 days. Visitors to the website should select the "Investor Relations" link to access the webcast.

Big 5 Sporting Goods Corporation

More Big 5 Sporting Goods Corporation News... More Fashion News - United States Of America...