Net sales for the fiscal 2018 second quarter were
Gross profit for the fiscal 2018 second quarter was
Selling and administrative expense as a percentage of net sales was 31.1% in the fiscal 2018 second quarter versus 30.4% in the second quarter of the prior year. Overall selling and administrative expense for the quarter increased
Net loss for the second quarter of fiscal 2018 was
For the 26-week period ended
“While our sales comped positively for the first half of the quarter, sales softened significantly over the back half of the period, which led to results that were below our expectations,” said
Mr. Miller continued, “For the third quarter to date, our sales are comping positively in the low single-digit range as our summer product categories have responded well to improved weather conditions in our markets. We believe our merchandise assortment is well positioned for the balance of the summer and the back-to-school and fall sports seasons.”
Quarterly Cash Dividend
The Company's Board of Directors has declared a quarterly cash dividend of
Guidance
For the fiscal 2018 third quarter, the Company expects same store sales to be in the flat to positive low single-digit range and earnings per diluted share to be in the range of
Store Openings
During the second quarter of fiscal 2018, the Company opened two stores and closed two stores, including one closure related to a relocation. During the fiscal 2018 third quarter, the Company anticipates opening one store. For the fiscal 2018 full year, the Company currently anticipates opening approximately five new stores and closing approximately three stores.
Conference Call Information
The Company will host a conference call and audio webcast today,
About
Big 5 is a leading sporting goods retailer in the western
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
FINANCIAL TABLES FOLLOW
| BIG 5 SPORTING GOODS CORPORATION | ||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| (Unaudited) | ||||||
| (In thousands, except share amounts) | ||||||
| July 1, 2018 |
December 31, 2017 |
|||||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash | $ | 5,898 | $ | 7,170 | ||
| Accounts receivable, net of allowances of $62 and $79, respectively | 12,024 | 10,886 | ||||
| Merchandise inventories, net | 345,622 | 313,905 | ||||
| Prepaid expenses | 19,668 | 18,930 | ||||
| Total current assets | 383,212 | 350,891 | ||||
| Property and equipment, net | 73,053 | 77,265 | ||||
| Deferred income taxes | 13,444 | 14,172 | ||||
| Other assets, net of accumulated amortization of $1,622 and $1,575, respectively | 3,578 | 2,732 | ||||
| Total assets | $ | 473,287 | $ | 445,060 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 112,594 | $ | 113,740 | ||
| Accrued expenses | 59,947 | 68,226 | ||||
| Current portion of capital lease obligations | 1,784 | 1,754 | ||||
| Total current liabilities | 174,325 | 183,720 | ||||
| Deferred rent, less current portion | 15,512 | 15,948 | ||||
| Capital lease obligations, less current portion | 2,452 | 2,800 | ||||
| Long-term debt | 90,651 | 45,000 | ||||
| Other long-term liabilities | 10,259 | 10,523 | ||||
| Total liabilities | 293,199 | 257,991 | ||||
| Commitments and contingencies | ||||||
| Stockholders' equity: | ||||||
| Common stock, $0.01 par value, authorized 50,000,000 shares; issued 25,081,337 and | ||||||
| 24,919,624 shares, respectively; outstanding 21,431,124 and 21,345,159 shares, respectively | 250 | 249 | ||||
| Additional paid-in capital | 117,323 | 116,495 | ||||
| Retained earnings (1) | 105,042 | 112,424 | ||||
| Less: Treasury stock, at cost; 3,650,213 and 3,574,465 shares, respectively | (42,527 | ) | (42,099 | ) | ||
| Total stockholders' equity | 180,088 | 187,069 | ||||
| Total liabilities and stockholders' equity | $ | 473,287 | $ | 445,060 | ||
| (1) In the first quarter of fiscal 2018, the Company recorded an after-tax increase to beginning retained earnings of $0.6 million for a change in accounting principle related to revenue recognition. | ||||||
| BIG 5 SPORTING GOODS CORPORATION | ||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||
| (Unaudited) | ||||||||||
| (In thousands, except per share data) | ||||||||||
| 13 Weeks Ended | 26 Weeks Ended | |||||||||
| July 1, 2018 |
July 2, 2017 |
July 1, 2018 |
July 2, 2017 |
|||||||
| Net sales | $ | 239,951 | $ | 243,671 | $ | 474,129 | $ | 496,275 | ||
| Cost of sales | 164,680 | 164,363 | 326,132 | 333,345 | ||||||
| Gross profit | 75,271 | 79,308 | 147,997 | 162,930 | ||||||
| Selling and administrative expense | 74,656 | 74,188 | 148,144 | 148,832 | ||||||
| Operating income (loss) | 615 | 5,120 | (147 | ) | 14,098 | |||||
| Interest expense | 793 | 380 | 1,449 | 648 | ||||||
| (Loss) income before income taxes | (178 | ) | 4,740 | (1,596 | ) | 13,450 | ||||
| Income taxes (1) | 70 | 1,962 | (39 | ) | 5,346 | |||||
| Net (loss) income (1) | $ | (248 | ) | $ | 2,778 | $ | (1,557 | ) | $ | 8,104 |
| Earnings per share: | ||||||||||
| Basic (1) | $ | (0.01 | ) | $ | 0.13 | $ | (0.07 | ) | $ | 0.37 |
| Diluted (1) | $ | (0.01 | ) | $ | 0.13 | $ | (0.07 | ) | $ | 0.37 |
| Dividends per share | $ | 0.15 | $ | 0.15 | $ | 0.30 | $ | 0.30 | ||
| Weighted-average shares of common stock outstanding: | ||||||||||
| Basic | 20,985 | 21,746 | 20,964 | 21,715 | ||||||
| Diluted | 20,985 | 21,871 | 20,964 | 21,923 | ||||||
| (1) In the first quarter of fiscal 2018, the Company recorded a charge of $0.2 million to write-off deferred tax assets related to share-based compensation, which increased net loss by $0.01 per share. | ||||||||||
Contact:
Big 5 Sporting Goods Corporation
Sr. Vice President and Chief Financial Officer
(310) 536-0611
Partner
(646) 277-1254
Source: Big 5 Sporting Goods Corporation