Big 5 Sporting Goods Corporation today reported that second quarter net sales increased to $219.8 million from net sales of $216.0 million for the second quarter of fiscal 2009. As the company previously reported, same store sales for the quarter decreased 0.5% versus the comparable period last year. As a reminder, the company's same store sales increased 0.3% during the second quarter of fiscal 2009 compared to the second quarter of fiscal 2008.
Gross profit for the fiscal 2010 second quarter increased to $73.0 million from $71.3 million in the second quarter of the prior year. The Company's gross profit margin was 33.2% in the fiscal 2010 second quarter versus 33.0% in the second quarter of the prior year. The improvement in gross profit margin reflected an increase in merchandise margins of approximately 10 basis points and the leveraging of distribution costs, partially offset by increased store occupancy costs.
Selling and administrative expense as a percentage of net sales was 29.6% in the fiscal 2010 second quarter versus 29.2% in the second quarter of the prior year. Overall selling and administrative expense increased $2.0 million during the quarter from the same period last year due mainly to higher labor and operating costs to support an increase in store count.
Net income for the second quarter of fiscal 2010 was $4.8 million, or 22 cents per diluted share, compared to net income of $4.7 million, or 22 cents per diluted share, for the second quarter of fiscal 2009.
For the 26-week period ended July 4, 2010, net sales increased $12.0 million, or 2.8%, to $438.3 million from net sales of $426.3 million in the 26 weeks ended June 28, 2009. Same store sales increased 0.9% in the first 26 weeks of fiscal 2010 versus the comparable period last year. Net income was $9.8 million, or 45 cents per diluted share, for the first 26 weeks of fiscal 2010, compared to net income of $7.4 million, or 35 cents per diluted share, for the first half of last year.
BIG 5 SPORTING GOODS CORPORATION | |||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||
(Unaudited) | |||||||||
(In thousands, except per share data) | |||||||||
13 Weeks Ended | 26 Weeks Ended | ||||||||
July 4, 2010 | June 28, 2009 | July 4, 2010 | June 28, 2009 | ||||||
Net sales | $ | 219,828 | $ | 216,040 | $ | 438,349 | $ | 426,331 | |
Cost of sales | 146,862 | 144,709 | 293,833 | 287,929 | |||||
Gross profit | 72,966 | 71,331 | 144,516 | 138,402 | |||||
Selling and administrative expense | 65,002 | 63,029 | 128,065 | 124,867 | |||||
Operating income | 7,964 | 8,302 | 16,451 | 13,535 | |||||
Interest expense | 363 | 608 | 767 | 1,321 | |||||
Income before income taxes | 7,601 | 7,694 | 15,684 | 12,214 | |||||
Income taxes | 2,849 | 3,039 | 5,899 | 4,800 | |||||
Net income | $ | 4,752 | $ | 4,655 | $ | 9,785 | $ | 7,414 | |
Earnings per share : | |||||||||
Basic | $ | 0.22 | $ | 0.22 | $ | 0.45 | $ | 0.35 | |
Diluted | $ | 0.22 | $ | 0.22 | $ | 0.45 | $ | 0.35 | |
Dividends per share | $ | 0.05 | $ | 0.05 | $ | 0.10 | $ | 0.10 | |
Weighted-average shares of common stock outstanding: | |||||||||
Basic | 21,554 | 21,429 | 21,519 | 21,422 | |||||
Diluted | 21,893 | 21,554 | |||||||
