Big 5 Sporting Goods Q4 sales rise 5.1%

11 Jan '06

3 min read

These incremental costs resulted primarily from the need to devote additional labor resources to address the complexities of operating two distribution center facilities simultaneously during the transition while minimizing disruption of product flow to the Company's stores over the holiday period.

The Company expects the impact of these higher costs will reduce earnings per diluted share for the fourth quarter by approximately $0.06 from the Company's original fourth quarter guidance.

The Company continues to expect to be fully operational at the new distribution center facility by the end of the first quarter of fiscal 2006.

However, the Company expects to continue to devote more labor resources to the transition than previously anticipated during the first quarter of fiscal 2006 in order to facilitate smooth product flow between the Company's distribution facilities and its stores.

The Company now expects earnings per diluted share for the fourth quarter of fiscal 2005 to be in the range of $0.32 to $0.35 versus previous guidance of $0.40 to $0.44 per diluted share.

'Although they are pleased to have achieved their 40th consecutive quarterly increase in same store sales, they are disappointed that their sales performance fell somewhat short of their plan, with particular softness in winter-related categories,' said Steven G Miller, Big 5's Chairman, President and Chief Executive Officer.

'Their move to the newdistribution center has been an enormous task and they are pleased that they remain on schedule to complete the transition during the first quarter of 2006.

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