Global Apparel Market – An Overview | Watch NOW! | Ad
Home / Knowledge / News / Fashion / Weakness in Big 5 roller shoe product in Q2
Weakness in Big 5 roller shoe product in Q2
01
Aug '08
Big 5 Sporting Goods Corporation, a leading sporting goods retailer, reported financial results for the fiscal 2008 second quarter ended June 29, 2008.

For the fiscal 2008 second quarter, net sales were $209.0 million, compared to net sales of $217.8 million for the second quarter of fiscal 2007. Same store sales declined 7.6% for the second quarter, primarily due to a mid-single digit decrease in customer traffic and continued weakness in the roller shoe product category, which accounted for approximately 140 basis points of the same store sales decline during the second quarter.

Gross profit for the fiscal 2008 second quarter was $68.4 million, compared to $74.8 million in the second quarter of the prior year. The Company's gross profit margin was 32.7% in the fiscal 2008 second quarter versus 34.3% in the second quarter of the prior year. The Company achieved an 11 basis-point increase in product selling margins and lowered overall distribution center expenses versus the prior year despite operating 22 more stores and experiencing increased freight costs due to higher fuel prices.

These benefits were offset by higher store occupancy costs and a $1.5 million one-time pre-tax charge to correct an error in the Company's previously recognized straight-line rent expense, substantially all of which pertained to prior periods and accumulated over a period of 15 years. This charge accounted for approximately 75 basis points of the decline in gross profit margin during the second quarter.

Selling and administrative expense as a percentage of net sales was 30.8% in the fiscal 2008 second quarter versus 29.1% in the second quarter of the prior year, primarily due to lower sales levels and higher store-related expenses reflecting an increased store count.

Net income for the second quarter of fiscal 2008 was $1.7 million, or $0.08 per diluted share, compared to net income of $5.9 million, or $0.26 per diluted share, for the second quarter of fiscal 2007.

For the 26 week period ended June 29, 2008, net sales decreased $13.0 million, or 3.0%, to $421.9 million from net sales of $434.9 million for the same period last year. Same store sales decreased 6.4% in the first 26 weeks of fiscal 2008 versus the same period last year. Net income was $5.8 million, or $0.27 per diluted share, for the first 26 weeks of fiscal 2008, compared to net income of $13.5 million, or $0.59 per diluted share, for the same period last year.

Results for the second quarter and first 26 weeks of fiscal 2008 include a one-time pre-tax charge of $1.5 million, or $0.04 per diluted share, to correct an error in the Company's previously recognized straight-line rent expense, substantially all of which pertained to prior periods and accumulated over a period of 15 years. The Company has determined this charge to be immaterial to its prior year and current year financial statements.

"Given the challenging sales environment, we are pleased with our second quarter earnings results, which came in at the high end of our expectations on an operational basis, but were impacted by the one-time charge relating to lease accounting," said Steven G. Miller, the Company's Chairman, President and Chief Executive Officer.


Must ReadView All

China reportedly cancels trade talks with US, Liu He visit

Apparel/Garments | On 22nd Sep 2018

China reportedly cancels trade talks with US, Liu He visit

Washington is reportedly positive about arriving at a solution to its ...

AmCham Cambodia cautions US against possible sanctions

Apparel/Garments | On 22nd Sep 2018

AmCham Cambodia cautions US against possible sanctions

In a letter to US lawmakers, the American Chamber of Commerce...

Courtesy: ycloset

Apparel/Garments | On 22nd Sep 2018

Alibaba invests in clothes sharing platform Ycloset

Chinese garment sharing platform YCloset has completed an undisclosed ...

Interviews View All

Asim Dalal, Indo Count Retail Ventures

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Rahuul Jashnani, Jashn

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Rahul Bhadani, Looksgud

Rahul Bhadani
Looksgud

Navigating through catalogues is a bit hasslesome

Abhishek Pachauri,

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Karen Lou,

Karen Lou

Australia-based Sunseeker has been creating swimwear since 1970. Sunseeker ...

Yash Jain & Sanjeev Jain,

Yash Jain & Sanjeev Jain

Divyam Export, launched about 30 years ago, exports to 15 countries,...

Robert Erichsen, Statex Produktions & Vertriebs GmbH

Robert Erichsen
Statex Produktions & Vertriebs GmbH

Statex Produktions & Vertriebs Gmbh, founded in 1978 and headquartered ...

Mohammad Hassan, Biax Fiberfilm

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Robin Grankvist, OrganoClick AB

Robin Grankvist
OrganoClick AB

Robin Grankvist talks about PFCs, additives and various chemicals used in...

Sandeep and Sarah Shaikh Gonsalves, SS Homme

Sandeep and Sarah Shaikh Gonsalves
SS Homme

SS Homme celebrates the craft of traditional tailoring through the bespoke ...

Priya Somaiya, Usha Social Services

Priya Somaiya
Usha Social Services

The Usha Silai label from Usha International is all set for a retail...

Adriano Goldschmied, AG Jeans

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

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

Leave your Comments


September 2018

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

news category


Related Categories:

Advanced Search