Big 5 Sporting Goods Corporation reported net sales of $175.6 million for the fiscal 2025 first quarter ended March 30, compared to net sales of $193.4 million for the first quarter of fiscal 2024. First quarter same-store sales decreased 7.8 percent year-over-year (y/y).

Gross profit for the fiscal 2025 first quarter was $54.3 million, compared to $60.4 million in the 2024 first quarter. The company’s gross profit margin was 30.9 percent of net sales in Q1, down 30 basis points from the 31.2 percent posted in the first quarter last year, primarily reflecting higher store occupancy expense as a percentage of net sales, and lower merchandise margins, which declined 78 basis points y/y.

Overall selling and administrative expense (SG&A) for the quarter decreased by $0.6 million from the prior year, reflecting decreases in labor costs and reduced credit card fees related to lower sales. As a percentage of net sales, SG&A expense was 40.3 percent in the fiscal 2025 first quarter, compared to 36.9 percent in the year-ago quarter due to the lower sales base.

The net loss for the first quarter was $17.3 million, or a loss of 78 cents per basic share, compared to a net loss of $8.3 million, or a loss of 38 cents per basic share, in the 2024 first quarter. In connection with the valuation allowance related to deferred tax assets established in the third quarter of fiscal 2024, net loss for the 2025 first quarter does not reflect an income tax benefit, while net loss for the 2024 first quarter reflects an income tax benefit of $2.8 million.

EBITDA, a non-GAAP financial measure, was a negative $12.0 million for the first quarter, compared to negative $6.5 million in the prior-year quarter.

“Our first quarter performance was in line with our guidance, which reflected an expectation of ongoing macroeconomic headwinds affecting consumer discretionary spending,” offered Steven G. Miller, chairman, president and CEO of Big 5 Sporting Goods Corporation.

“While challenging weather conditions impacted our winter-related sales early in the quarter, particularly across our southern markets, we saw meaningful sequential improvement in March. Although we anticipate our customer base will remain challenged over the balance of the second quarter, we believe we will benefit from fresh seasonal spring and summer product that we brought in ahead of potential tariff increases. We remain focused on delivering value to our increasingly price-conscious consumers while maintaining disciplined operational execution,” Miller continued.

Balance Sheet Summary
The company ended the 2025 fiscal first quarter with $30.9 million of borrowings under the company’s $150.0 million credit facility and a cash balance of $3.9 million.

As of the end of the quarter, merchandise inventories increased by 6.5 percent year-over-year, reflecting the earlier timing of receipts versus the prior-year period.

Second Quarter Guidance
For the fiscal 2025 second quarter, the company expects same-store sales to be down in the low- to mid-single-digit range compared to the fiscal 2024 second quarter. The company’s same-store sales guidance reflects an expectation that macroeconomic headwinds will continue to impact discretionary consumer spending over the balance of the second quarter.

The retailer said this guidance also reflects the combined negative impact of calendar shifts associated with the Easter holiday, during which the company’s stores were closed from the first quarter of fiscal 2024 and into the second quarter of fiscal 2025, and with the Fourth of July holiday, which will move one day further into the third quarter this year.

Fiscal 2025 second-quarter net loss per basic share is expected in the range of 75 cents to 90 cents, which reflects no tax benefit for the period, compared to fiscal 2024 second-quarter net loss per basic share of 46 cents, which reflected a tax benefit of 16 cents per basic share.

Store Openings and Closings
The company has 414 stores in operation, reflecting eight store closures in the 2025 first quarter as part of its ongoing efforts to optimize its store base. During the remainder of fiscal 2025, the company expects to close approximately seven more stores and does not expect to open any new stores.

Image courtesy Big 5 Sporting Goods Corporation