Big 5 Sporting Goods Corporation Announces Fiscal 2018 Fourth Quarter and Full Year Sales Results and Update of Earnings Guid...
January 14 2019 - 4:01PM
Big 5 Sporting Goods Corporation (Nasdaq: BGFV) (the “Company”), a
leading sporting goods retailer, today reported sales results for
the fiscal 2018 fourth quarter and full year ended December 30,
2018.
For the fiscal 2018 fourth quarter, net sales
were $247.1 million compared to net sales of $242.9 million for the
fourth quarter of fiscal 2017. Same store sales increased 1.1% for
the fourth quarter of fiscal 2018. The Company’s merchandise
margins decreased approximately 11 basis points for the fourth
quarter of fiscal 2018 from the fourth quarter of fiscal
2017.
For the fiscal 2018 full year, net sales
decreased to $987.6 million from $1.01 billion in fiscal
2017. Same store sales decreased 2.7% for the fiscal 2018
full year. The Company’s merchandise margins decreased
approximately 12 basis points for the fiscal 2018 full year
compared to fiscal 2017.
Total merchandise inventories were down
approximately 7.0% at year-end versus the prior year, reflecting a
significant reduction of winter product inventory as well as the
Company’s efforts to optimize inventory levels across its product
assortment. Fiscal year-end debt levels decreased by
approximately $19 million from the end of the third quarter of
fiscal 2018 to $65 million as of December 30, 2018.
For the fiscal 2018 fourth quarter, the Company
now expects to realize a loss per share in the range of $0.15 to
$0.17, which compares to the Company’s previous guidance for the
fourth quarter of a loss per share in the range of $0.15 to
$0.25. For the fiscal 2018 full year, the Company now expects
to realize a loss per share in the range of $0.08 to $0.10.
Earnings guidance for the fiscal 2018 fourth quarter and full year
is unaudited and excludes charges to be determined related to a
deferred tax valuation allowance for certain income tax credits and
potential asset impairment.
“After same store sales decreased in the
low-single-digit range in October and November, same store sales
increased in the mid-single-digit range during our December
period,” said Steven G. Miller, the Company’s Chairman, President
and Chief Executive Officer. “Sales benefitted from
exceptionally strong demand for winter products following Christmas
as winter weather conditions in many of our markets were highly
favorable. For the quarter, same store sales in our apparel
category increased in the high-single-digit range, same store sales
in our footwear category were slightly positive and same store
sales in our hardgoods category decreased in the low-single-digit
range. We achieved small increases in both customer
transactions and average sale during the quarter.”
Mr. Miller continued, “We are pleased that the
positive weather comparisons and resulting momentum in our winter
product categories have continued into January, providing a strong
sales start to our new year and allowing us to sell through our
winter inventory at favorable margins.”
The Company expects to issue earnings results
for the fiscal 2018 fourth quarter and full year by the end of
February.
About Big 5 Sporting Goods
Corporation Big 5 is a leading sporting goods
retailer in the western United States, operating 436 stores under
the “Big 5 Sporting Goods” name as of the fiscal quarter ended
December 30, 2018. Big 5 provides a full-line product
offering in a traditional sporting goods store format that averages
11,000 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, tennis, golf, winter and summer recreation and
roller sports.
Except for historical information contained
herein, the statements in this release are forward-looking and made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements involve
known and unknown risks and uncertainties and other factors that
may cause Big 5’s actual results in current or future periods to
differ materially from forecasted results. These risks and
uncertainties include, among other things, changes in the consumer
spending environment, fluctuations in consumer holiday spending
patterns, increased competition from e-commerce retailers, breach
of data security or other unauthorized disclosure of sensitive
personal or confidential information, the competitive environment
in the sporting goods industry in general and in Big 5’s specific
market areas, inflation, product availability and growth
opportunities, changes in the current market for (or regulation of)
firearm-related products, disruption in product flow, seasonal
fluctuations, weather conditions, changes in cost of goods,
operating expense fluctuations, increases in labor and
benefit-related expense, changes in laws or regulations, including
those related to tariffs and duties, lower than expected
profitability of Big 5’s e-commerce platform or cannibalization of
sales from Big 5’s existing store base which could occur as a
result of operating the e-commerce platform, litigation risks,
stockholder campaigns and proxy contests, risks related to Big 5’s
leveraged financial condition, changes in interest rates, credit
availability, higher expense associated with sources of credit
resulting from uncertainty in financial markets and economic
conditions in general. Those and other risks and uncertainties are
more fully described in Big 5’s filings with the Securities and
Exchange Commission, including its Annual Reports on Form 10-K and
Quarterly Reports on Form 10-Q. Big 5 conducts its business in a
highly competitive and rapidly changing environment. Accordingly,
new risk factors may arise. It is not possible for management to
predict all such risk factors, nor to assess the impact of all such
risk factors on Big 5’s business or the extent to which any
individual risk factor, or combination of factors, may cause
results to differ materially from those contained in any
forward-looking statement. Big 5 undertakes no obligation to revise
or update any forward-looking statement that may be made from time
to time by it or on its behalf.
Contact:Big 5 Sporting Goods CorporationBarry EmersonSr. Vice
President and Chief Financial Officer(310) 536-0611
ICR, Inc.John MillsManaging Partner(646) 277-1254
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