Big 5 Sporting Goods Corp. has adjusted its guidance based on low earnings in the initial weeks of the company’s second quarter period.
After estimating same-store sales to rise by low-single digits on a percentage basis in the quarter, Big 5 saw a 0.5% drop in same-store sales. Compared with May's view of 24 cents to 30 cents, the regional sporting goods retailer now expects earnings of 20 cents to 23 cents a share, relatively flat when compared to the year-ago quarter which finished at 22 cents a share.
“Our top-line results were slightly softer than we expected, which we attribute largely to the sluggish pace of the economic recovery across much of our geography as well as a lack of warm weather in many of our west coast markets,” said Steven G. Miller, chairman, president and chief executive officer. “All three of our major merchandise categories — footwear, hardgoods and apparel — performed within a relatively tight range of one another. Although we comped positively in April and June and experienced encouraging sales trends over the recent Fourth of July holiday period, those sales were not enough to offset a challenging month of May that was impacted by lackluster sales of summer-related products.”
Miller continued, “We continue to perform well on the operational side of our business, as we maintained product margins for the quarter, and remain pleased with our inventory management and expense control efforts. While the economic environment in our markets is not ideal, we remain confident in our overall strategy and believe our focus on providing compelling values to our customers will continue to serve our business well.”
