Big 5 Sporting Corp sales grow in Q2 07

12 Jul '07

2 min read

Big 5 Sporting Goods Corporation reported sales results and updated earnings guidance for the fiscal 2007 second quarter ended July 1, 2007.

For the fiscal 2007 second quarter, net sales increased $6.0 million, or 2.9%, to $217.8 million from net sales of $211.8 million for the second quarter of fiscal 2006. Same store sales declined 0.2% for the fiscal 2007 second quarter, representing the Company's first quarterly decrease in same store sales in over eleven years.

The Company now expects earnings per diluted share for the fiscal 2007 second quarter to be in the range of $0.23 to $0.26, compared to previously issued earnings guidance of $0.25 to $0.33 per diluted share.

The revised second quarter earnings guidance reflects sales at the low end of the Company's previously issued sales guidance range and product margins in-line with the fiscal 2006 second quarter.

Fiscal 2007 second quarter earnings guidance 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.

"As we announced with our first quarter results, second quarter sales began to soften in the second half of April," said Steven G. Miller, the Company's Chairman, President and Chief Executive Officer.

"The macro-economic environment remained challenging and continued to affect results throughout the quarter. With a slight increase in promotional activity, we produced positive same store sales in May and June, but those sales increases were not enough to offset the weakness in April."

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