Big 5 Sporting Goods's sales rose 3.9% in the first quarter to $218.5 million from $210.3 million a year ago. Same store sales increased 2.4%, representing the company's fourth consecutive quarterly increase in same store sales. Net income climbed 78.6% to $5.0 million, or 23 cents per share, from $2.8 million, or 13 cents, for the first quarter of fiscal 2009.
As anticipated, first quarter sales were negatively affected by a shift in the timing of the Easter holiday, during which the company's stores are closed, into the first quarter from the second quarter last year.
Gross profit for the fiscal 2010 first quarter increased to $71.6 million from $67.1 million in the first quarter of the prior year. The Company's gross profit margin improved to 32.7% in the fiscal 2010 first quarter versus 31.9% in the first quarter of the prior year. The increase in gross profit margin was driven primarily by an increase in merchandise margins of approximately 15 basis points and increased sales leverage on distribution and store occupancy costs.
Selling and administrative expense as a percentage of net sales decreased to 28.8% in the fiscal 2010 first quarter versus 29.4% in the first quarter of the prior year. The Company leveraged selling and administrative costs through higher sales. Overall selling and administrative expense increased $1.2 million during the quarter from the same period last year due mainly to the increase in store count.
Net income for the first quarter of fiscal 2010 improved to $5.0 million, or 23 cents per diluted share, from net income of $2.8 million, or 13 cents, for the first quarter of fiscal 2009.
“We are pleased to have significantly improved both our top and bottom lines during the first quarter of fiscal 2010,” said Steven G. Miller, the Company's Chairman, President and Chief Executive Officer. “We achieved earnings per share at the high end of our guidance range for the quarter, driven by growth in customer traffic and average sale and expansion of merchandise and operating margins. Our same store sales growth of 2.4% represented our strongest quarterly same store growth since the fourth quarter of 2006, as favorable winter weather conditions in many of our markets led to sales increases across our three major merchandise categories of apparel, footwear and hardgoods. Additionally, our strong cash flow enabled us to continue to reduce debt levels, and we ended the quarter with $46 million in debt compared to $55 million at the end of 2009 and $77 million at the end of the first quarter of 2009.”
Mr. Miller continued, “We believe we are well positioned to grow same store sales again during the second quarter of fiscal 2010. While the economic environment in our markets remains challenging, 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.”
Quarterly Cash Dividend
The Company's Board of Directors has declared a quarterly cash dividend of $0.05 per share of outstanding common stock, which will be paid on June 15, 2010 to stockholders of record as of June 1, 2010.
Guidance
For the fiscal 2010 second quarter, the Company expects same store sales in the positive low single-digit range and earnings per diluted share in the range of $0.24 to $0.30. For comparative purposes, the Company's earnings per diluted share for the second quarter of fiscal 2009 were $0.22.
Store Openings
During the first quarter, the Company opened two new stores and relocated one store. The Company ended the fiscal 2010 first quarter with 386 stores, and anticipates opening between 10 and 15 new stores, net of relocations, during fiscal 2010.
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BIG 5 SPORTING GOODS CORPORATION |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
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(Unaudited) |
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(In thousands, except per share data) |
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13 Weeks Ended |
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April 4, |
March 29, |
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Net sales |
$ |
218,521 |
$ |
210,291 |
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|
Cost of sales |
146,971 |
143,219 |
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Gross profit |
71,550 |
67,072 |
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Selling and administrative expense |
63,063 |
61,838 |
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Operating income |
8,487 |
5,234 |
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Interest expense |
404 |
713 |
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Income before income taxes |
8,083 |
4,521 |
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Income taxes |
3,050 |
1,761 |
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Net income |
$ |
5,033 |
$ |
2,760 |
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Earnings per share : |
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|
Basic |
$ |
0.23 |
$ |
0.13 |
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Diluted |
$ |
0.23 |
$ |
0.13 |
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Dividends per share |
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