Investor Relations

• Reports Same Store Sales Increase of 1.0%
• Achieves Third Quarter Earnings per Diluted Share of $0.34
• Declares Quarterly Cash Dividend of $0.10 per Share

EL SEGUNDO, Calif., Oct. 28, 2014 (GLOBE NEWSWIRE) -- Big 5 Sporting Goods Corporation (Nasdaq:BGFV) (the "Company"), a leading sporting goods retailer, today reported financial results for the fiscal 2014 third quarter ended September 28, 2014.

For the fiscal 2014 third quarter, net sales increased to $265.1 million from net sales of $259.1 million for the third quarter of fiscal 2013. Same store sales increased 1.0% for the third quarter of fiscal 2014. For comparison purposes, the Company's same store sales increased 1.4% for the third quarter of fiscal 2013 over the third quarter of the prior year.

Gross profit for the fiscal 2014 third quarter was $86.1 million, compared to $87.8 million in the third quarter of the prior year. The Company's gross profit margin was 32.5% in the fiscal 2014 third quarter versus 33.9% in the third quarter of the prior year. The decrease in gross profit margin was driven primarily by a decrease in merchandise margins of 47 basis points reflecting the impact of promotional activity, as well as increases in distribution and store occupancy costs as a percentage of net sales. For comparison purposes, merchandise margins in the third quarter last year increased by 12 basis points versus the third quarter of fiscal 2012.

Selling and administrative expense increased by $1.4 million for the fiscal 2014 third quarter over the prior year, but was unchanged as a percentage of net sales at 27.9%. The increase in overall selling and administrative expense was primarily due to higher employee labor and benefit-related expense and higher store-related expense reflecting an increased store count, partially offset by a decrease in legal expense reflecting a pre-tax charge of $1.0 million related to legal settlements recorded in the third quarter of 2013 as well as a decrease in print advertising expense.

Net income for the third quarter of fiscal 2014 was $7.5 million, or $0.34 per diluted share, including expenses associated with the development of the Company's e-commerce platform of $0.01 per diluted share, compared to net income for the third quarter of fiscal 2013 of $9.1 million, or $0.41 per diluted share, including $0.04 per diluted share for a charge for legal settlements and $0.01 per diluted share for expenses associated with the development of the Company's e-commerce platform.

For the 39-week period ended September 28, 2014, net sales were $727.5 million compared to net sales of $745.3 million in the comparable period last year. Same store sales decreased 3.7% in the first 39 weeks of fiscal 2014 versus the comparable period last year. For comparison purposes, the Company's same store sales increased 5.3% for the first 39 weeks of fiscal 2013 over the comparable period in fiscal 2012. Net income was $12.1 million, or $0.54 per diluted share, including $0.02 per diluted share of non-cash impairment charges and $0.02 per diluted share of e-commerce development expenses, for the first 39 weeks of fiscal 2014, compared to net income for the first nine months of last year of $22.8 million, or $1.03 per diluted share, including $0.04 per diluted share for a charge for legal settlements and $0.02 per diluted share for expenses associated with the development of the Company's e-commerce platform.

"We are pleased with our third quarter results, which exceeded our earnings guidance," said Steven G. Miller, the Company's Chairman, President and Chief Executive Officer. "After comping negatively in the low single-digit range in the first half of the quarter, sales comped positively in the low-mid single-digit range for the back half of the quarter as we benefited from strong sales of summer products and relatively favorable weather compared to the prior year.  Despite the continued reduced demand for firearms-related products and the impact of the ongoing severe drought over much of our western markets, we experienced growth in both customer transactions and average sale.  For the quarter, same store sales in our apparel category increased in the high single-digit range, footwear sales were slightly positive and hardgoods sales decreased in the low single-digit range compared to the prior year, reflecting the continued softness of firearms, ammunition and related products. Excluding firearms-related products, hardgoods sales increased in the mid-single-digit range for the quarter. We are encouraged that the positive sales trends have continued into the fourth quarter.  While the key holiday selling period lies ahead, we believe we are well positioned to drive traffic and sales with a compelling merchandise assortment and exciting promotional plans."

Quarterly Cash Dividend

The Company's Board of Directors has declared a quarterly cash dividend of $0.10 per share, which will be paid on December 15, 2014 to stockholders of record as of December 1, 2014.

Share Repurchases

During the fiscal 2014 third quarter, pursuant to its share repurchase program, the Company repurchased 114,200 shares of its common stock for a total expenditure of $1.2 million. As of September 28, 2014, the Company had $7.3 million available for future share repurchases under its $20.0 million share repurchase program.

Guidance

For the fiscal 2014 fourth quarter, the Company expects same store sales to increase in the low single-digit range and earnings per diluted share to be in the range of $0.14 to $0.22.  This guidance includes approximately $0.01 per diluted share in anticipated expenses associated with the development of the Company's e-commerce platform.  For comparative purposes, the Company's same store sales decreased 0.5% and earnings per diluted share were $0.23, including $0.01 per diluted share in e-commerce development expenses, for the fourth quarter of fiscal 2013.

Store Openings

During the third quarter of fiscal 2014, the Company opened four new stores, one of which was a relocation, and closed two stores as part of relocations, ending the quarter with 429 stores in operation.  During the fiscal 2014 fourth quarter, the Company anticipates opening 10 new stores, which would result in a year-end store count of 439.  

Conference Call Information

The Company will host a conference call and audio webcast today, October 28, 2014, at 2:00 p.m. Pacific (5:00 p.m. EDT) to discuss financial results for the third quarter of fiscal 2014. To access the conference call, participants in North America should dial (888) 438-5524, and international participants should dial (719) 325-2494. Participants are encouraged to dial in to the conference call ten minutes prior to the scheduled start time. The call will also be broadcast live over the Internet and accessible through the Investor Relations section of the Company's website at www.big5sportinggoods.com. Visitors to the website should select the "Investor Relations" link to access the webcast. The webcast will be archived and accessible on the same website for 30 days following the call. A telephone replay will be available through November 4, 2014 by calling (877) 870-5176 to access the playback; passcode is 3339328.

About Big 5 Sporting Goods Corporation

Big 5 is a leading sporting goods retailer in the western United States, operating 429 stores in 12 states under the "Big 5 Sporting Goods" name as of the fiscal quarter ended September 28, 2014. 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. 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, fluctuations in consumer holiday spending patterns, 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) firearms, ammunition and related products, seasonal fluctuations, weather conditions, changes in cost of goods, operating expense fluctuations, higher than expected costs related to the development of an e-commerce platform, delay in completing the e-commerce platform, lower than expected profitability of the 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, disruption in product flow, 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 Report on Form 10-K for fiscal 2013 and Quarterly Report on Form 10-Q for the second quarter of fiscal 2014. 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.

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CONTACT: Big 5 Sporting Goods Corporation
         Barry Emerson
         Sr. Vice President and Chief Financial Officer
         (310) 536-0611

         ICR, Inc.
         John Mills
         Partner
         (310) 954-1105