- Achieves Fourth Quarter Earnings per Diluted Share of $0.17

- Reports Fiscal 2008 Full-Year Earnings per Diluted Share of $0.64

- Declares Quarterly Cash Dividend of $0.05 per Share

EL SEGUNDO, Calif., Feb. 26 /PRNewswire-FirstCall/ -- Big 5 Sporting Goods Corporation (Nasdaq: BGFV), a leading sporting goods retailer, today reported financial results for the fiscal 2008 fourth quarter and full year ended December 28, 2008.

As the Company previously reported, 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 as a result of the continuation of the challenging consumer environment.

Gross profit for the fiscal 2008 fourth quarter was $71.3 million, compared to $79.2 million in the fourth quarter of the prior year. The Company's gross profit margin was 32.5% in the fiscal 2008 fourth quarter versus 34.1% in the fourth quarter of the prior year. The decrease in gross profit margin was driven primarily by a decline of approximately 50 basis points in product selling margins and deleveraging of store occupancy costs due to lower sales levels.

Selling and administrative expense as a percentage of net sales was 29.3% in the fiscal 2008 fourth quarter versus 28.8% in the fourth quarter of the prior year, primarily reflecting deleveraging of expenses as a result of lower sales volume. Overall selling and administrative expense declined $2.6 million during the quarter from the fourth quarter of the prior year, due to lower advertising, store-related and administrative expenses.

Net income for the fourth quarter of fiscal 2008 was $3.6 million, or $0.17 per diluted share, compared to net income of $6.2 million, or $0.28 per diluted share, for the fourth quarter of fiscal 2007.

For the fiscal 2008 full year ended December 28, 2008, net sales decreased $33.6 million, or 3.7%, to $864.7 million from net sales of $898.3 million for fiscal 2007. Same store sales decreased 7.0% in fiscal 2008 versus the prior year. Net income was $13.9 million, or $0.64 per diluted share, for fiscal 2008, compared to net income of $28.1 million, or $1.25 per diluted share, in fiscal 2007. Results for fiscal 2008 include a previously reported non-recurring pre-tax charge of $1.5 million, or $0.04 per diluted share, recorded in the second quarter to correct an error in the Company's previously recognized straight-line rent expense, substantially all of which pertained to prior periods.

'In an increasingly difficult economic environment, we are pleased to report fourth quarter and full year earnings at the upper end of the guidance that we issued last November,' said Steven G. Miller, the Company's Chairman, President and Chief Executive Officer. 'We believe these results reflect our operating discipline and ability to provide consumers with compelling values on quality products without significantly compromising our merchandise margins. During fiscal 2008 we focused on increasing operating efficiencies and managing our costs effectively as sales volume declined. As an example, through carefully managed attrition, we reduced our full-time company-wide headcount by approximately nine percent while operating 18 additional stores over the course of fiscal 2008 and continued to align our part-time store labor to sales levels.'

Mr. Miller continued, 'Recognizing that the economy is likely to remain challenging throughout 2009, we remain comfortable with our financial condition as we continue to take the steps we believe are necessary to effectively manage through this recessionary environment. We expect to further reduce our cost structure and manage our cash flow as business conditions warrant. We remain highly disciplined in our inventory management and are taking a conservative approach to new store growth. While we continue to explore opportunities for new locations, we expect to be very cautious in opening new stores until we have greater visibility of a broader economic turnaround.'

Quarterly Cash Dividend

Due to the nearly unprecedented downturn in the economy, the Company's Board of Directors has determined to reduce the Company's quarterly cash dividend to $0.05 per share of outstanding common stock, for an annual rate of $0.20 per share. This decision is consistent with the Company's objective to utilize its capital to maintain a healthy financial condition during these challenging economic times. The quarterly cash dividend of $0.05 per share of outstanding common stock will be paid on March 20, 2009 to stockholders of record as of March 6, 2009.