Big 5 Sporting Goods Says Comps Dip Tempered Q4 Growth

The El Segundo, CA-based retailer, which operates 429 stores in 12 mostly western states, reported same-store sales decreased 0.5 percent for the fourth quarter of fiscal 2013 versus the prior year period. For comparison purposes, the company's same store sales increased 6.5 percent for the fourth quarter of fiscal 2012 over the fourth quarter of the prior year. The company's merchandise margins for the fourth quarter of fiscal 2013 increased 47 basis points from the same period in the prior year.

For the fiscal 2013 full year, net sales increased 5.6 percent to $993.3 million from $940.5 million for fiscal 2012. Same store sales increased 3.9 percent  for the fiscal 2013 full year.

For the fiscal 2013 fourth quarter, the company now expects to realize earnings per diluted share in the range of $0.21 to $0.23. This guidance reflects anticipated expenses associated with the development of the company's new e-commerce platform of approximately $0.01 per diluted share. For comparison purposes, the company's earnings per diluted share for the fourth quarter of fiscal 2012 were $0.19. For the fiscal 2013 full year, the company now expects to realize earnings per diluted share in the range of $1.24 to $1.26, including legal settlement charges of $0.04 per diluted share and e-commerce development expenses of approximately $0.02 per diluted share, compared to earnings per diluted share for fiscal 2012 of $0.69, including store closing and non-cash impairment charges of $0.04 per diluted share.

“Our sales results for the fourth quarter reflect the anticipated impact of cycling against the surge of firearm and ammunition sales last year, as well as the unfortunate lack of winter weather across our western markets,” said Steven G. Miller, the company's Chairman, President and Chief Executive Officer. “For the quarter, same store sales in our apparel category increased in the low double-digit range, footwear sales were slightly positive and hardgoods sales decreased in the mid-single-digit range, primarily due to lower demand year-over-year for firearms and ammunition products. Given the challenges that we faced during the quarter and the highly promotional retail holiday environment, we feel pleased that we appear positioned to deliver another quarter of earnings growth through improved product margins and controlled operating expenses.”

The company expects to issue earnings results for the fiscal 2013 fourth quarter and full year by the end of February.

Big 5 provides a full-line product offering in a traditional sporting goods store format that averages 11,000 square feet. Big 5's product mix includes athletic shoes, apparel and accessories, as well as a broad selection of outdoor and athletic equipment for team sports, fitness, camping, hunting, fishing, tennis, golf, snowboarding and roller sports.