- Achieves Third Quarter Earnings Per Diluted Share of $0.21
- Declares Quarterly Cash Dividend
EL SEGUNDO, Calif., Nov. 3 /PRNewswire-FirstCall/ -- Big 5 Sporting Goods
Corporation (Nasdaq: BGFV), a leading sporting goods retailer, today reported
financial results for the fiscal 2008 third quarter ended September 28, 2008.
For the fiscal 2008 third quarter, net sales were $223.2 million, compared
to net sales of $231.3 million for the third quarter of fiscal 2007. Same
store sales declined 6.6% for the third quarter, primarily due to a decrease
in customer traffic resulting from the continuation of the challenging
consumer environment.
Gross profit for the fiscal 2008 third quarter was $74.3 million, compared
to $79.4 million in the third quarter of the prior year. The Company's gross
profit margin was 33.3% in the fiscal 2008 third quarter versus 34.3% in the
third quarter of the prior year. The Company achieved an 11 basis-point
increase in product selling margins and lowered overall distribution center
expenses versus the prior year despite operating 19 more stores and
experiencing increased freight costs due to higher fuel prices. These
benefits were offset by higher store occupancy costs due primarily to an
increased store count.
Selling and administrative expense as a percentage of net sales was
29.6% in the fiscal 2008 third quarter versus 27.7% in the third quarter of
the prior year, primarily due to lower sales levels and higher store-related
expenses reflecting an increased store count.
Net income for the third quarter of fiscal 2008 was $4.5 million, or $0.21
per diluted share, compared to net income of $8.4 million, or $0.37 per
diluted share, for the third quarter of fiscal 2007.
For the 39-week period ended September 28, 2008, net sales decreased
$21.2 million, or 3.2%, to $645.0 million, from net sales of $666.2 million
for the same period last year. Same store sales decreased 6.5% in the first
39 weeks of fiscal 2008 versus the same period last year. Net income was
$10.3 million, or $0.48 per diluted share, for the first 39 weeks of fiscal
2008, compared to net income of $21.9 million, or $0.97 per diluted share, for
the same period last year. Results for the first 39 weeks of fiscal 2008
include a one-time pre-tax charge of $1.5 million, or $0.04 per diluted share,
in the second quarter to correct an error in the Company's straight-line rent
expense, substantially all of which pertained to prior periods.
'We are pleased with the relative strength of our performance in this
challenging consumer environment, as we delivered third quarter earnings that
exceeded the high end of our guidance,' said Steven G. Miller, the Company's
Chairman, President and Chief Executive Officer. 'By focusing on managing our
inventory and controlling expenses, we continued to mitigate the impact of the
difficult macro-economic environment on our sales. We achieved increased
efficiencies in our distribution center and reduced total product inventories
by 4.9% from the prior year despite operating 19 more stores.'
Mr. Miller continued, 'While recent events have demonstrated that economic
conditions are difficult to forecast and consumer spending is likely to remain
soft through the holiday season, we believe that we are well positioned from
an operational, promotional and product offering perspective. We are taking
the steps that we believe are necessary to weather the current economic
turbulence, while continuing to offer a strong value proposition that we
believe will resonate with consumers as they evaluate their spending power in
today's economy.'
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 December
15, 2008 to stockholders of record as of November 28, 2008.
Share Repurchases
During the fiscal 2008 third quarter, the Company repurchased 85,757
shares of its common stock for a total expenditure of $0.6 million. As of the
end of the fiscal 2008 third quarter, the Company had approximately
$14.4 million available for future stock repurchases under its $20.0 million
share repurchase program authorized in the fiscal 2007 fourth quarter.
Guidance
The Company's guidance for the remainder of fiscal 2008 assumes that sales
will continue to be impacted by a challenging consumer environment.
