Big 5 Sporting Goods Corporation reported that net sales for its 13-week fourth quarter ended January 1 were $217.1 million, versus net sales of $217.6 million for the 14-week fourth quarter of fiscal 2004. Fiscal 2004 included 53 weeks, with the extra week included in the company's fourth quarter.
On a comparable 13-week basis for both fiscal 2005 and fiscal 2004, net sales increased 5.1% and same store sales increased 1.5%. This same store sales increase represented the Company's 40th consecutive quarter of positive same store sales comparisons. The Company's results were impacted by unfavorable winter weather comparisons in California and the southwest, which were partially offset by favorable winter weather comparisons in the northwest. Sales of non-winter-related products were generally in line with the Company's expectations for the quarter.
For the 52 weeks ended January 1, 2006, net sales increased 3.8% to $812.1 million from $782.2 million for the corresponding 53-week fiscal year in 2004. On a comparable 52-week basis for both fiscal 2005 and 2004, net sales increased 5.7% and same store sales increased 2.4%.
During the fourth quarter, the Company experienced higher costs than anticipated related to the ongoing transition to the Company's new distribution center in Riverside, California. These incremental costs resulted primarily from the need to devote additional labor resources to address the complexities of operating two distribution center facilities simultaneously during the transition while minimizing disruption of product flow to the Company's stores over the holiday period.
The Company expects the impact of these higher costs will reduce earnings per diluted share for the fourth quarter by approximately $0.06 from the Company's original fourth quarter guidance. The Company continues to expect to be fully operational at the new distribution center facility by the end of the first quarter of fiscal 2006. However, the Company expects to continue to devote more labor resources to the transition than previously anticipated during the first quarter of fiscal 2006 in order to facilitate smooth product flow between the Company's distribution facilities and its stores.
The Company now expects earnings per diluted share for the fourth quarter of fiscal 2005 to be in the range of $0.32 to $0.35 versus previous guidance of $0.40 to $0.44 per diluted share.
“Although we are pleased to have achieved our 40th consecutive quarterly increase in same store sales, we are disappointed that our sales performance fell somewhat short of our plan, with particular softness in winter-related categories,” said Steven G. Miller, Big 5's Chairman, President and Chief Executive Officer. “Our move to the new distribution center has been an enormous task and we are pleased that we remain on schedule to complete the transition during the first quarter of 2006. We very much look forward to running all distribution operations out of our new facility in the near future.”
