Big 5 Sporting Goods Corporation is reporting that 2024 fourth quarter top-line results fell short of expectations and the SoCal-based retailer now forecasts reporting earnings in the middle range of its previously provided guidance range; however, the retailer also said it achieved “favorable performance” relative to its plan in both gross margins and expenses.
“While our sales continued to be impacted by the challenging macroeconomic environment for our consumers, the lower-than-expected sales were primarily due to weaker winter product sales, influenced by warmer-than-normal weather conditions across our footprint and minimal snowfall in the southern tier of our footprint which limited winter recreational activities. Although sales were softer than anticipated, our fourth quarter same store sales marked the fourth consecutive quarter of sequential improvement in our year-over-year sales trends,” explained Steven Miller, chairman, president and CEO, Big 5 Sporting Goods Corporation.
For the fiscal 2024 fourth quarter ended December 29, net sales were reported at $181.6 million, compared to net sales of $196.3 million for the 2023 fourth quarter. Same-store sales decreased 6.1 percent year-over-year. Merchandise margins decreased 23 basis points for the fourth quarter of fiscal 2024 compared to the prior year period.
The company now expects to report a loss per basic share in the range of 94 cents to 97 cents per share for the quarter, which compares to the company’s previous guidance for a fourth quarter loss per basic share in the range of 80 cents to $1.05 per share. The company said the updated earnings guidance for the fiscal 2024 fourth quarter includes a net benefit of $1.0 million, or 4 cents per basic share, related to an insurance settlement.
For the fiscal 2024 full year, net sales were $795.5 million, compared to net sales of $884.7 million for fiscal 2023. Same-store sales decreased 9.4 percent for the fiscal 2024 full year compared to fiscal 2023. The company’s merchandise margins decreased 34 basis points for the fiscal 2024 full year compared to fiscal 2023.
Big 5 now expects to report a loss per basic share in the range of $3.14 to $3.17 for the full year, which includes the fourth quarter net benefit related to an insurance settlement, in addition to a non-cash charge for the establishment of a valuation allowance related to deferred tax assets of $21.8 million, or 99 cents per basic share, recorded in the third quarter of fiscal 2024.
Financial results for the fiscal 2024 fourth quarter and full-year are unaudited, preliminary and subject to final year-end accounting entries.
Big 5 ended the 2024 fiscal year with a cash balance of $5.4 million and borrowings of $13.8 million under its recently-renewed $150 million credit facility with Bank of America, N.A.
Merchandise inventories decreased by 4.1 percent as of the end of fiscal 2024 versus the end of the prior fiscal year.
Image courtesy Big 5 Sporting Goods Corporation
