The largest sporting goods retailer on the West Coast keeps winning over the pundits as they consistently execute against their time-tested strategies. Senior management and buyers alike will often tell vendors, “Dont try to tell us how to do it, we know how to run our business”, and they continue to prove that they do.
There is a reason that brands give them the latitude to run their business as they see fit-they know their consumer, they know what their consumer wants, and they know how to get their consumer in the store.
Moodys upgraded the retailers bond rating last week as Big 5 announced that it converted principal on 10.875% senior notes due in 2007 using funds available under its 3% revolver. The balance of the outstanding notes will be reduced to $83.1 million by the end of January 2003 from the initial $131 million face value in November 1997.
“As a result of this transaction, we will significantly lower our annual interest expense, which will positively add to earnings and enhance shareholder value,” said Steven G. Miller, chief executive officer.
Moody’s Investors Service upgraded the debt ratings of Big 5 Corp.s revolving credit facility to Ba2 from Ba3 and 10.875% senior notes due 2007 to Ba3 from B1, noting the company’s “continued improvements to operating metrics.”
Big 5 also announced in December the opening of its 275th store. The company opened 15 new stores in 2002, with the latest addition bowing in South Ogden, Utah. Big 5 plans to open 15 to 20 stores in 2003.
