Big 5 Sporting Goods saw first quarter earnings fall 31.7% on a 4.4% comp store sales decline, but Steve Miller, BGFV’s chairman, president and CEO, said traffic and average selling prices had shown “meaningful improvement” since it provided its last update in late February.  While sales during the first two months of the quarter comped down in the high-single-digits. the company “saw an abrupt and significant improvement in sales trends beginning in March” and  “comped positively over the last four weeks of the quarter.”


Much of the pickup reflected more cooperative weather. In the first two months of the quarter, a lack of winter weather led to soft sales of winter products and February rains in some markets hurt the start of spring sports sales. The year-ago quarter also benefited from very favorable winter weather. Without the extra wintry weather this time, however, dry ball fields this year helped spring selling in March. Miller also said the chain is benefiting from its discount formula.


Regarding April, Miller said “the positive sales trends that we experienced in March have continued and actually seem to be improving,” but tempered his comments by adding, “That being said, we certainly recognize that the overall consumer environment remains very challenging, and there is still tremendous uncertainty surrounding the broader economic recovery and the health of the consumer.”


From a product standpoint, footwear was the strongest performer, down low-single-digits in the quarter. Hardgoods were also down in the low-single-digit range, benefiting from some strength of outdoor products. Firearms and ammunition also increased. Apparel was down in the low-teens due largely to soft winter product sales “and possibly a greater impact from the weak economy and competitive activity.”


Merchandising margins declined 88 basis points due the drop in apparel sales, which carry higher-margins than other categories, as well as slightly more promotional pricing and inflationary pressures. Operating costs declined due primarily to lower advertising and administrative expenses.