For the fiscal 2008 third quarter ended Sept. 28, net sales for Big 5 Sporting Goods Corporation declined 3.5% to $223.2 million, compared to net sales of $231.3 million for the third quarter of fiscal 2007. Comps declined 6.6% percent for the third quarter, primarily due to a decrease in customer traffic resulting from the continuation of the challenging consumer environment.


Gross profit for the fiscal 2008 third quarter was $74.3 million, compared to $79.4 million in the third quarter of the prior year. The company's gross profit margin was 33.3% in the fiscal 2008 third quarter versus 34.3& in the third quarter of the prior year.


The company achieved an 11 basis-point increase in product selling margins and lowered overall distribution center expenses versus the prior year despite operating 19 more stores and experiencing increased freight costs due to higher fuel prices. These benefits were offset by higher store occupancy costs due primarily to an increased store count.

Selling and administrative expense as a percentage of net sales was 29.6% in the fiscal 2008 third quarter versus 27.7% in the third quarter of the prior year, primarily due to lower sales levels and higher store-related expenses reflecting an increased store count.


Net income for the third quarter of fiscal 2008 was $4.5 million, or 21 cents per diluted share, compared to net income of $8.4 million, or 37 cents per diluted share, for the third quarter of fiscal 2007.


For the 39-week period ended Sept. 28, 2008, net sales decreased $21.2 million, or 3.2 percent, to $645.0 million, from net sales of $666.2 million for the same period last year. Same store sales decreased 6.5% in the first 39 weeks of fiscal 2008 versus the same period last year.


Net income was $10.3 million, or 48 cents per diluted share, for the first 39 weeks of fiscal 2008, compared to net income of $21.9 million, or 97 cents per diluted share, for the same period last year. Results for the first 39 weeks of fiscal 2008 include a one-time pre-tax charge of $1.5 million, or 4 cents per diluted share, in the second quarter to correct an error in the company's straight-line rent expense, substantially all of which pertained to prior periods.

 

 BIG 5 SPORTING GOODS CORPORATION
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                 (Unaudited)
                    (In thousands, except per share data)

                           13 Weeks Ended                39 Weeks Ended
                    September 28,  September 30,  September 28,  September 30,
                        2008           2007           2008           2007

    Net sales         $223,180       $231,308       $645,041       $666,161

    Cost of
     sales (1) (2)     148,925        151,903        430,828        436,240

      Gross
       profit (1) (2)   74,255         79,405        214,213        229,921

    Selling and
     administrative
     expense (1)        65,962         64,006        193,585        189,261

      Operating income   8,293         15,399         20,628         40,660

    Interest expense     1,166          1,582          3,911          4,504

      Income before
       income taxes      7,127         13,817         16,717         36,156

    Income taxes         2,669          5,438          6,415         14,247

      Net income (2)    $4,458         $8,379        $10,302        $21,909

    Earnings per share:
      Basic              $0.21          $0.37          $0.48          $0.97

      Diluted            $0.21          $0.37          $0.48          $0.97

    Dividends per share  $0.09          $0.09          $0.27          $0.27

    Weighted-average
     shares of common
     stock outstanding:
      Basic             21,447         22,406         21,673         22,591

      Diluted           21,464         22,492         21,685         22,693