- Reports Fourth Quarter Same Store Sales Decline of 8.6%, In Line With
Previously Issued Guidance
- Fourth Quarter Earnings Guidance Narrowed to a Range of $0.13 - $0.16
Per Diluted Share Compared to Previous Range of $0.07 - $0.17 Per Diluted
Share
EL SEGUNDO, Calif., Jan. 8 /PRNewswire-FirstCall/ -- Big 5 Sporting Goods
Corporation (Nasdaq: BGFV), a leading sporting goods retailer, today reported
sales results for the fiscal 2008 fourth quarter and full year ended December
28, 2008.
For the fiscal 2008 fourth quarter, net sales were $219.6 million,
compared to net sales of $232.1 million for the fourth quarter of fiscal 2007.
Same store sales declined 8.6% for the fourth quarter due to a decrease in
customer traffic resulting from the continuation of the challenging consumer
environment. As anticipated, the Company's product selling margins were lower
than the prior year, declining 50 basis points during the fourth quarter.
For the fiscal 2008 full year, net sales decreased $33.6 million, or 3.7%,
to $864.7 million from $898.3 million for the fiscal 2007 full year. Same
store sales declined 7.0% for the fiscal 2008 full year.
For the fiscal 2008 fourth quarter, the Company expects to realize
earnings per diluted share in the range of $0.13 to $0.16, which is toward the
upper end of previously issued earnings guidance. For the fiscal 2008 full
year, the Company expects to realize earnings per diluted share in the range
of $0.61 to $0.64.
"Given the unprecedented challenges that we and most retailers faced over
the holiday season, we are pleased to report sales in line with, and
anticipated earnings toward the upper end of, our previously issued guidance,"
said Steven G. Miller, the Company's Chairman, President and Chief Executive
Officer. "Importantly, we produced our fourth quarter sales without
significantly compromising product margins. We believe our ability to deliver
these results in this environment reflects the strength of our business model
and reputation for offering values on quality merchandise, which has been a
hallmark of our success for over 50 years. During the quarter, our three
major merchandise categories performed within a relatively tight range of one
another, with hard goods being our strongest category, followed by footwear
and apparel."
Mr. Miller continued, "As would be expected, we have remained focused on
controlling expenses and managing inventories. We reduced per-store
inventories at year-end by approximately 11% from the prior year. We further
strengthened our balance sheet during the quarter, as our positive cash flow
allowed us to reduce borrowings under our credit facility to $96.5 million at
year-end from $103.4 million at the end of last year. We continue to take the
steps that we believe are necessary to position our business for growth when
the consumer climate improves."
The Company expects to issue earnings results for the fiscal 2008 fourth
quarter and full year, as well as provide guidance for fiscal 2009, by the
last week of February.
About Big 5 Sporting Goods Corporation
Big 5 is a leading sporting goods retailer in the western United States,
operating 381 stores in 11 states under the "Big 5 Sporting Goods" name. 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, snowboarding and in-line skating.
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, which may cause
Big 5's actual results in current or future periods to differ materially from
forecasted results. Those risks and uncertainties include, among other things,
continued or worsening weakness in the consumer spending environment and the
U.S. financial and credit markets, the competitive environment in the sporting
goods industry in general and in Big 5's specific market areas, inflation,
product availability and growth opportunities, seasonal fluctuations, weather
conditions, changes in cost of goods, operating expense fluctuations,
disruption in product flow or increased costs related to distribution center
operations, changes in interest rates, credit availability 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 Report on Form 10-K for the fiscal year ended December
30, 2007 and its Quarterly Report on Form 10-Q for the fiscal quarter ended
September 28, 2008. 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.
SOURCE Big 5 Sporting Goods Corporation
-0- 01/08/2009
/CONTACT: Barry Emerson, Sr. Vice President and Chief Financial Officer
of Big 5 Sporting Goods Corporation, +1-310-536-0611; or John Mills, Senior
Managing Director of ICR, Inc., +1-310-954-1105, for Big 5 Sporting Goods
Corporation/
/Web Site: http://www.big5sportinggoods.com /
(BGFV)
CO: Big 5 Sporting Goods Corporation
ST: California
IN: REA SPE
SU: SLS ERP
PR
-- LA56699 --
9849 01/08/2009 06:00 EST http://www.prnewswire.com