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EL SEGUNDO, Calif., April 30, 2024 (GLOBE NEWSWIRE) Big 5 Sporting Goods Corporation (Nasdaq: BGFV) (the “Company,” “we,” “our,” “us,” “Big 5”), a leading sporting goods retailer, today reported financial results for the fiscal 2024 first quarter ended March 31, 2024.
Net sales for the fiscal 2024 first quarter were $193.4 million, compared to net sales of $224.9 million for the first quarter of fiscal 2023. Same store sales decreased 13.5% for the first quarter of fiscal 2024, compared to the first quarter of fiscal 2023. The calendar shift of the Easter holiday, during which the Company’s stores are closed, from the second quarter of 2023 to the first quarter of 2024, negatively impacted sales comparisons by approximately 100 basis points.
Steven G. Miller, the Company’s Chairman, President and Chief Executive Officer, said, “Our first quarter results were consistent with our guidance and reflect a challenging macroeconomic environment that continues to pressure consumer discretionary spending. Although disappointed with our sales results in the face of persistent headwinds, we are pleased with the results we were able to achieve in areas of the business that we can best control, including optimizing merchandise margins and managing expenses and inventory. Looking toward the upcoming summer season, while we anticipate our consumer will continue to feel pressured, we are enthused about our seasonal product assortment and are cautiously optimistic that warmer weather will help drive improved sales trends.”
Gross profit for the fiscal 2024 first quarter was $60.4 million, compared to $75.1 million in the first quarter of the prior year. The Company’s gross profit margin was 31.2% in the fiscal 2024 first quarter versus 33.4% in the first quarter of the prior year. The decrease in gross profit margin compared with the prior year primarily reflected higher store occupancy and distribution expense, including costs capitalized into inventory, as a percentage of net sales. The Company’s merchandise margins increased by 48 basis points year-over-year for the first quarter of fiscal 2024.
Overall selling and administrative expense for the quarter decreased by $3.8 million from the prior year, primarily reflecting lower employee labor expense. As a percentage of net sales, selling and administrative expense was 36.9% in the fiscal 2024 first quarter, compared to 33.4% in the fiscal 2023 first quarter due to the lower sales base.
Net loss for the first quarter of fiscal 2024 was $8.3 million, or $0.38 per basic share. This compares to net income of $0.2 million, or $0.01 per diluted share in the first quarter of fiscal 2023.
EBITDA was a negative $6.6 million for the first quarter of fiscal 2024, compared to a positive $4.5 million in the prior year period. EBITDA and Adjusted EBITDA are non-GAAP financial measures. See “Non-GAAP Financial Measures” below for more details and a reconciliation of non-GAAP EBITDA and Adjusted EBITDA to the most comparable GAAP measure, net income.
Balance Sheet
The Company ended the 2024 fiscal first quarter with no borrowings under its credit facility and a cash balance of $12.6 million. This compares to no borrowings under the Company’s credit facility and $9.2 million of cash as of the end of fiscal 2023. Merchandise inventories as of the end of the first quarter decreased by 12.5% compared to the prior year period, reflecting the Company’s efforts to manage inventory levels relative to sales.
Quarterly Cash Dividend
The Company's Board of Directors has declared a quarterly cash dividend of $0.05 per share of outstanding common stock, which will be paid on June 14, 2024, to stockholders of record as of May 31, 2024.
Second Quarter Guidance
For the fiscal 2024 second quarter, the Company expects same store sales to decrease in the high single-digit range compared to the fiscal 2023 second quarter. The Company’s same store sales guidance reflects an expectation that macroeconomic headwinds will continue to impact discretionary consumer spending over the balance of the second quarter. Fiscal 2024 second quarter net loss per basic share is expected in the range of $0.40 to $0.55, which compares to fiscal 2023 second quarter net loss per basic share of $0.01.
Store Openings
The Company currently has 424 stores in operation, reflecting six store closures in the 2024 first quarter as part of the Company’s ongoing efforts to optimize its store base. During the remainder of fiscal 2024, the Company expects to open approximately five stores and close approximately four additional stores.
About Big 5 Sporting Goods Corporation
Big 5 is a leading sporting goods retailer in the western United States, currently operating 424 stores under the “Big 5 Sporting Goods” name. Big 5 provides a full-line product offering in a traditional sporting goods store format that averages 12,000 square feet. Big 5’s product mix includes athletic shoes, apparel and accessories, as well as a broad selection of outdoor and athletic equipment for team sports, fitness, camping, hunting, fishing, home recreation, tennis, golf, and winter and summer recreation.
| 13 Weeks Ended | ||||||||||
|
March 31, 2024 |
April 2, 2023 |
|||||||||
| (In thousands) | ||||||||||
| GAAP net (loss) income (as reported) | $ | (8,286 | ) | $ | 193 | |||||
| + Interest expense (income) (as reported) | 123 | (115 | ) | |||||||
| + Income tax benefit (as reported) | (2,818 | ) | (107 | ) | ||||||
| + Depreciation and amortization (as reported) | 4,375 | 4,510 | ||||||||
| EBITDA | $ | (6,606 | ) | $ | 4,481 | |||||
| Adjusted EBITDA | $ | (6,606 | ) | $ | 4,481 | |||||
FINANCIAL TABLES FOLLOW
| BIG 5 SPORTING GOODS CORPORATION | ||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| (Unaudited) | ||||||
| (In thousands, except share amounts) | ||||||
|
March 31, 2024 |
December 31, 2023 |
|||||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash | $ | 12,621 | $ | 9,201 | ||
| Accounts receivable, net of allowances of $63 and $48, respectively | 8,778 | 9,163 | ||||
| Merchandise inventories, net | 275,839 | 275,759 | ||||
| Prepaid expenses | 12,631 | 16,052 | ||||
| Total current assets | 309,869 | 310,175 | ||||
| Operating lease right-of-use assets, net | 258,014 | 253,615 | ||||
| Property and equipment, net | 56,653 | 58,595 | ||||
| Deferred income taxes | 16,196 | 13,427 | ||||
| Other assets, net of accumulated amortization of $2,137 and $1,954, respectively | 8,828 | 8,871 | ||||
| Total assets | $ | 649,560 | $ | 644,683 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 69,818 | $ | 55,201 | ||
| Accrued expenses | 57,306 | 61,283 | ||||
| Current portion of operating lease liabilities | 67,805 | 70,372 | ||||
| Current portion of finance lease liabilities | 3,984 | 3,843 | ||||
| Total current liabilities | 198,913 | 190,699 | ||||
| Operating lease liabilities, less current portion | 197,612 | 191,178 | ||||
| Finance lease liabilities, less current portion | 11,293 | 11,856 | ||||
| Other long-term liabilities | 6,305 | 6,536 | ||||
| Total liabilities | 414,123 | 400,269 | ||||
| Commitments and contingencies | ||||||
| Stockholders' equity: | ||||||
| Common stock, $0.01 par value, authorized 50,000,000 shares; issued 26,932,297 and 26,747,617 shares, respectively; outstanding 22,625,042 and 22,440,362 shares, respectively | 269 | 267 | ||||
| Additional paid-in capital | 129,150 | 128,737 | ||||
| Retained earnings | 160,275 | 169,667 | ||||
| Less: Treasury stock, at cost; 4,307,255 shares | (54,257 | ) | (54,257 | ) | ||
| Total stockholders' equity | 235,437 | 244,414 | ||||
| Total liabilities and stockholders' equity | $ | 649,560 | $ | 644,683 | ||
| BIG 5 SPORTING GOODS CORPORATION | ||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||
| (Unaudited) | ||||||
| (In thousands, except per share data) | ||||||
| 13 Weeks Ended | ||||||
|
March 31, 2024 |
April 2, 2023 |
|||||
| Net sales | $ | 193,427 | $ | 224,939 | ||
| Cost of sales | 133,029 | 149,795 | ||||
| Gross profit | 60,398 | 75,144 | ||||
| Selling and administrative expense | 71,379 | 75,173 | ||||
| Operating loss | (10,981 | ) | (29 | ) | ||
| Interest expense (income) | 123 | (115 | ) | |||
| (Loss) income before income taxes | (11,104 | ) | 86 | |||
| Income tax benefit | (2,818 | ) | (107 | ) | ||
| Net (loss) income | $ | (8,286 | ) | $ | 193 | |
| (Loss) earnings per share: | ||||||
| Basic | $ | (0.38 | ) | $ | 0.01 | |
| Diluted | $ | (0.38 | ) | $ | 0.01 | |
| Weighted-average shares of common stock outstanding: | ||||||
| Basic | ||||||
