Big 5 Sporting Goods said same-store sales declined 0.2% for the fiscal 2007 second quarter, representing its first quarterly decrease in comp store sales in over eleven years. Net Q2 sales increased 2.9% to $217.8 million from $211.8 million. The company now expects earnings to range between 23 and 26 cents a share, down from the previous guidance of 25 cents to 33 cents.
The reduced guidance reflects sales at the low end of the company's previous guidance range and product margins in-line with the Q2 last year. The lower guidance also reflects lower distribution center expenses offset by a reduction in inventory cost capitalization and higher administrative expenses to support the retailer's financial reporting initiatives.
“As we announced with our first quarter results, second quarter sales began to soften in the second half of April,” said Steven Miller, chairman, president and CEO. “The macro-economic environment remained challenging and continued to affect results throughout the quarter. With a slight increase in promotional activity, we produced positive same store sales in May and June, but those sales increases were not enough to offset the weakness in April.
“We are very proud of our outstanding track record and our positive same store sales streak, which came to an end after 45 consecutive quarters of growth amid a challenging consumer environment,” continued Miller. “While we are certainly taking a hard look at our operation for ways in which we might be able to improve both our top and bottom line in the current environment, we remain confident in the consistency and effectiveness of our overall business model.”
