Big 5 Sporting Goods Corporation has reported net sales of $181.6 million in the 2024 fourth quarter, compared to net sales of $196.3 million for the fourth quarter of fiscal 2023. Same-store sales decreased 6.1 percent for the fourth quarter of fiscal 2024 compared to the fourth quarter of fiscal 2023.

Gross profit for the fiscal 2024 fourth quarter was $51.2 million, compared to $59.2 million in the fourth quarter of the prior year.

The company’s gross profit margin was 28.2 percent of net sales in the fiscal 2024 fourth quarter versus 30.2 percent in the fourth quarter of the prior-year Q4 period. The company said the decrease in gross profit margin compared with the prior-year quarter primarily reflected higher store occupancy and distribution expense, including costs capitalized into inventory as a percentage of net sales, and lower merchandise margins, which declined 23 basis points year-over-year.

Overall selling and administrative expense for the quarter decreased by $1.0 million from the prior-year period, primarily reflecting lower labor costs and a gain of $0.9 million related to an insurance settlement. As a percentage of net sales, selling and administrative expense was 39.3 percent in the fiscal 2024 fourth quarter, compared to 36.9 percent in the fiscal 2023 fourth quarter due to the lower sales base.

Net loss for the fourth quarter of fiscal 2024 was $20.9 million, or 95 cents per basic share, including a gain related to an insurance settlement of 4 cents per basic share; this compares to a net loss of $8.9 million, or 41 cents per basic share in the fourth quarter of fiscal 2023, which included a 2 cents per basic share store asset impairment charge.

Because of the valuation allowance related to deferred tax assets established in the third quarter of fiscal 2024, net loss for the fourth quarter of fiscal 2024 does not reflect an income tax benefit. Net loss for the fourth quarter of fiscal 2023 reflects an income tax benefit of $4.5 million.

For the fiscal 2024 full year, net sales were $795.5 million compared to net sales of $884.7 million for fiscal 2023. Same-store sales decreased 9.4 percent for the fiscal 2024 full year versus the prior year.

Net loss for the fiscal 2024 full year was $69.1 million, or $3.15 per basic share, which included a non-cash charge for the establishment of a valuation allowance related to deferred tax assets of $21.8 million, or 99 cents per basic share, and a non-cash store asset impairment charge of $0.8 million, or 4 cents per basic share. These charges were partially offset by the gain related to an insurance settlement; this compares to a net loss for the fiscal 2023 full year of $7.1 million, or 33 cents per basic share.

Adjusted EBITDA was a negative $16.4 million for the fourth quarter of fiscal 2024, compared to negative $8.7 million in the prior-year Q4 period.

For the fiscal 2024 full year, Adjusted EBITDA was a negative $36.7 million, compared to a positive $7.3 million in the prior year.

“Our fourth quarter performance was consistent with our previously announced expectations, delivering earnings in the middle of our guidance range, reflecting our ability to manage margins and expenses in the challenging sales environment,” commented Steven Miller, chairman, president and CEO of Big 5 Sporting Goods Corporation. “Sales trends have remained challenged in the first quarter as the overall macro environment for discretionary spending has remained under pressure. This has been further compounded by the continuation of inconsistent and unfavorable weather patterns, particularly across our southern tier of our footprint. As we transition to spring, we believe that our merchandise assortment is well positioned, and we will remain focused on disciplined operational execution.”

Balance Sheet Summary
In December 2024 the company amended and extended its $150 million credit agreement with Bank of America, which matures in December 2029. The company ended the 2024 fiscal fourth quarter with $13.8 million of borrowings under the credit facility and a cash balance of $5.4 million.

Merchandise inventories as of the end of the fourth quarter decreased by 5.6 percent compared to the prior year period, reflecting the company’s efforts to manage inventory levels relative to sales.

First Quarter Guidance
For the fiscal 2025 first quarter, the company expects same-store sales to be down in the mid- to high-single-digit range compared to the fiscal 2024 first 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 first quarter.

Fiscal 2025 first quarter net loss per basic share is expected to range from 75 cents to 85 cents, which compares to fiscal 2024 first quarter net loss per basic share of 38 cents.

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

Image courtesy Big 5 Sporting Goods Corporation