UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): May 3, 2007

BIG 5 SPORTING GOODS CORPORATION

(Exact name of registrant as specified in charter)

Delaware (State or Other Jurisdiction of Incorporation)		000-49850 (Commission File Number)		95-4388794 (IRS Employer Identification No.)
2525 East El Segundo Boulevard, El Segundo, California (Address of principal executive offices)				90245   (Zip Code)

Registrant’s telephone number, including area code: (310) 536-0611

N/A

(Former name or former address, if changed since last report)

     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2):

        o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

        o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

        o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

        o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (7 CFR 240.13e-4(c))

 

 

Item 2.02. Results of Operations and Financial Condition.

     The information in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1, is furnished pursuant to Item 2.02, “Results of Operations and Financial Condition” and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to liability under that Section, except as specifically incorporated by reference into a filing under the Securities Act of 1933, as amended, or the Exchange Act.

     On May 3, 2007, Big 5 Sporting Goods Corporation issued a press release in which, among other things, it reported financial results for its fiscal 2007 first quarter. The press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

Item 9.01. Financial Statements and Exhibits

Exhibit No.		Description
99.1		Press release, dated May 3, 2007, issued by Big 5 Sporting Goods Corporation.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		BIG 5 SPORTING GOODS CORPORATION
		(Registrant)
Date: May 3, 2007
		/s/ Steven G. Miller
		Steven G. Miller
		President and Chief Executive Officer

Exhibit 99.1

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

Integrated Corporate Relations, Inc.
John Mills
Senior Managing Director
(310) 954-1105

BIG 5 SPORTING GOODS CORPORATION ANNOUNCES FISCAL 2007 FIRST QUARTER RESULTS

	•		First Quarter Diluted Earnings Per Share Increase 27% to $0.33
	•		Same Store Sales Increase Represents 45th Consecutive Quarter of Same Store Sales Growth
	•		Declares Regular Quarterly Cash Dividend

EL SEGUNDO, Calif., May 3, 2007 — Big 5 Sporting Goods Corporation (NASDAQ: BGFV), a leading sporting goods retailer, today reported financial results for the fiscal 2007 first quarter ended April 1, 2007.

For the fiscal 2007 first quarter, net sales increased $9.8 million, or 4.7%, to $217.0 million from net sales of $207.2 million for the first quarter of fiscal 2006. Same store sales increased 1.0% for the first quarter, representing the Company’s 45th consecutive quarter of positive same store sales comparisons.

Gross profit for the fiscal 2007 first quarter increased 6.3% to $78.0 million from $73.4 million in the first quarter of the prior year. The Company’s gross profit margin improved to 36.0% in the fiscal 2007 first quarter from 35.4% in the first quarter of the prior year. The margin improvement was driven by an increase of approximately 80 basis points in product selling margins, which benefited from sales of winter-related products earlier in the quarter at higher margins than the prior year, and a $2.2 million decrease in distribution center costs due to facility transition costs incurred in the prior year. These improvements were partially offset by a $2.4 million reduction in inventory cost capitalization from the first quarter of the prior year.

Selling and administrative expense as a percentage of net sales improved to 27.6% in the fiscal 2007 first quarter from 27.7% in the first quarter of last year. This improvement was driven primarily by a $1.3 million decrease in audit and legal fees due to additional expenses

incurred in the prior year to complete the Company’s financial statement and internal control audits, and the Company’s leveraging of store-related expenses. These benefits were partially offset by a $1.1 million increase in advertising expense primarily to support the Company’s sales and store growth.

Net income for the first quarter of fiscal 2007 increased to $7.6 million, or $0.33 per diluted share, from net income of $5.9 million, or $0.26 per diluted share, for the first quarter of fiscal 2006.

Quarterly Cash Dividend
The Company’s Board of Directors has declared a quarterly cash dividend of $0.09 per share of outstanding common stock, which will be paid on June 15, 2007 to stockholders of record as of June 1, 2007.

Guidance
For the second quarter of fiscal 2007, the Company expects to realize same store sales growth in the flat to low single-digit range and earnings per diluted share in the range of $0.25 to $0.33. Second quarter earnings guidance reflects lower than anticipated sales beginning in the second half of April and, compared to the prior year, reflects lower distribution center expenses offset by a reduction in inventory cost capitalization and higher administrative expenses to support the Company’s financial reporting initiatives. The Company continues to expect full-year same store sales growth in the low single-digit range and full-year earnings per diluted share in the range of $1.47 to $1.57.

Store Openings
During the fiscal 2007 first quarter, the Company opened three new stores, including one relocation, and closed an additional store in preparation for its relocation during the second quarter. The Company operated 344 stores at the end of the first quarter and anticipates opening four new stores during the fiscal 2007 second quarter. The Company anticipates opening approximately 20 new stores, net of relocations, during fiscal 2007.

“We are pleased to have begun the year with a very strong earnings performance,” said Steven G. Miller, the Company’s Chairman, President and Chief Executive Officer. “We achieved sales and product margin gains in each of our three major merchandise categories of footwear, hard goods and apparel, while comping against our strongest quarterly same store sales performance of last year. Product margins benefited from strong sales of winter-related products early in the quarter, when margins are highest, compared to last year, when we realized very strong winter product sales late in the quarter.”

Commenting on second quarter sales trends, Mr. Miller added, “While sales over the first two weeks of the second quarter were positive, they began to soften in the second half of April. We are continuing to evaluate the factors that may be contributing to these lower than anticipated sales levels. The back half of the second quarter, which includes Memorial Day,

Father’s Day and pre-Fourth of July sales, is by far the most important part of the quarter. We believe we are well positioned with a strong merchandise and promotional plan for this period.”

Conference Call Information
The Company will host a conference call and audio webcast today at 2:00 p.m. Pacific (5:00 p.m. EDT) to discuss financial results for the fiscal 2007 first quarter. The webcast will be available at www.big5sportinggoods.com and archived for 30 days. Visitors to the website should select the “Investor Relations” link to access the webcast.

About Big 5 Sporting Goods Corporation
Big 5 is a leading sporting goods retailer in the United States, operating 344 stores in 10 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, 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 costs of goods, operating expense fluctuations, disruption in product flow or increased costs related to distribution center operations, changes in interest rates and economic conditions in general. Those and other risks 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 31, 2006. 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 disclaims any obligation to update such factors or to publicly announce results of revisions to any of the forward-looking statements contained herein to reflect future events or developments.

# # #

FINANCIAL TABLES FOLLOW

BIG 5 SPORTING GOODS CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)

		April 1,				December 31,
		2007				2006
ASSETS
Current assets:
Cash and cash equivalents		$	6,836			$	5,145
Trade and other receivables, net of allowances of $254 and $314, respectively			8,867				13,146
Merchandise inventories			233,524				228,692
Prepaid expenses			8,003				9,857
Deferred income taxes			8,775				9,345
Total current assets			266,005				266,185
Property and equipment, net			87,529				88,159
Deferred income taxes			8,156				7,795
Other assets, net of accumulated amortization of $204 and $590, respectively			1,095				1,107
Goodwill			4,433				4,433
Total assets		$	367,218			$	367,679
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	109,006			$	96,128
Accrued expenses			56,646				66,513
Current portion of capital lease obligations			2,035				1,995
Total current liabilities			167,687				164,636
Deferred rent, less current portion			19,397				19,735
Capital lease obligations, less current portion			3,081				2,992
Long-term debt			67,457				77,086
Other long-term liabilities			2,833				2,770
Total liabilities			260,455				267,219
Commitments and contingencies and subsequent events
Stockholders’ equity:
Common stock, $0.01 par value, authorized 50,000,000 shares; issued 22,868,387 and 22,848,887 shares, respectively; outstanding 22,689,167 and 22,670,367 shares, respectively			228				228
Additional paid-in capital			88,730				87,956
Retained earnings			19,672				14,126
Less: Treasury stock, at cost; 179,220 and 178,520 shares, respectively			(1,867	)			(1,850	)
Total stockholders’ equity			106,763				100,460
Total liabilities and stockholders’ equity		$	367,218			$	367,679

BIG 5 SPORTING GOODS CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)

		13 Weeks Ended
		April 1, 2007				April 2, 2006
Net sales		$	217,007			$	207,181
Cost of goods sold, buying and occupancy, excluding depreciation and amortization shown separately below			138,963				133,754
Gross profit			78,044				73,427
Operating expenses:
Selling and administrative			59,872				57,392
Depreciation and amortization			4,206				4,400
Total operating expenses			64,078				61,792
Operating income			13,966				11,635
Interest expense			1,449				1,829
Income before income taxes			12,517				9,806
Income taxes			4,930				3,863
Net income		$	7,587			$	5,943
Dividends per share declared		$	0.09			$	0.07
Earnings per share:
Basic		$	0.33			$	0.26
Diluted		$	0.33			$	0.26
Weighted-average shares of common stock outstanding:
Basic			22,675				22,702
Diluted			22,785				22,787