Big 5 Sporting Goods felt pressure from the soft retail environment out west, showing the difficulties extend from the top tier to the volume guys. Same-store sales declined 7.6% for the second quarter, primarily due to a mid-single digit decrease in customer traffic and anticipated continued decline in the roller shoe product sales, which accounted for approximately 140 basis points of the same-store sales decline during the second quarter. Average transaction size was down low-single-digits.
Footwear sales were down in high-single-digits, but down low-single-digits when excluding roller shoes. Apparel sales were down in low-single-digits for the second quarter, while hardgoods were down in the mid to high-single-digits.
On a conference call with analysts, Steven G. Miller, the company’s chairman, president and CEO, noted that the company is seeing success with stay-at-home or staycation products.
“In general, those kind of products seem to be outperforming categories that require you to get in your car, drive, and in some cases pay to engage in an activity when you get there. Examples may be golf and water or boating-related items,” said Miller.
For the fiscal 2008 third quarter, BGFV expects a decline in same-store sales in the mid-single-digit range and earnings per diluted share in the range of 14 cents to 20 cents. For the fiscal 2008 full year, same-store sales are expected to decrease in the mid-single-digits. The company now expects earnings per diluted share for the fiscal 2008 full year in the range of 60 cents to 80 cents.
The third quarter will benefit from the shift in the July 4th holiday back a quarter, with management estimating that comps will be buoyed by 60 to 70 basis points as a result.
