Big 5 Sporting Goods Corporation Announces Fiscal 2024 Second Quarter Results

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Big 5 Sporting Goods Corporation
Big 5 Sporting Goods Corporation

EL SEGUNDO, Calif., July 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 second quarter ended June 30, 2024.

“Our second quarter results were consistent with our guidance range, as our customers continue to feel the ongoing and cumulative impact of inflationary pressures on their discretionary spending,” stated Steven G. Miller, the Company’s Chairman, President and Chief Executive Office. “As we battle these sales headwinds, our team remains focused on aspects of the business within our control, including optimization of merchandise margins and managing our expenses and inventory levels. We believe these efforts on the operational front will best position us to generate improved results as the headwinds ease.”

Mr. Miller continued, “Given the uncertainty of the duration of the challenged macroeconomic environment, and our priority of maintaining a healthy balance sheet, we have proactively suspended our dividend to provide added financial flexibility. We remain steadfast in our commitment to maximizing shareholder value and, as we always have, will continue to evaluate opportunities to return value to shareholders.”

Net sales for the fiscal 2024 second quarter were $199.8 million, compared to net sales of $223.6 million for the second quarter of fiscal 2023. Same store sales decreased 9.9% for the second quarter of fiscal 2024, compared to the second quarter of fiscal 2023.

Gross profit for the fiscal 2024 second quarter was $58.7 million, compared to $71.9 million in the second quarter of the prior year. The Company’s gross profit margin was 29.4% in the fiscal 2024 second quarter versus 32.2% in the second 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 decreased by 27 basis points year-over-year for the second quarter of fiscal 2024.

Overall selling and administrative expense for the quarter decreased by $0.2 million from the prior year, primarily reflecting lower employee labor and staffing expense and reduced performance-based incentive accruals. As a percentage of net sales, selling and administrative expense was 36.1% in the fiscal 2024 second quarter, compared to 32.4% in the fiscal 2023 second quarter due to the lower sales base.