Big 5 Sporting Goods Corp. ( (BGFV) ) has released its Q1 earnings. Here is a breakdown of the information Big 5 Sporting Goods Corp. presented to its investors.
Big 5 Sporting Goods Corporation is a prominent retailer in the sporting goods industry, operating 414 stores across the western United States. The company offers a wide range of products, including athletic shoes, apparel, and equipment for various sports and outdoor activities.
In its fiscal 2025 first-quarter earnings report, Big 5 Sporting Goods Corporation announced a decline in net sales to $175.6 million from $193.4 million in the same quarter of the previous year. The company also reported a net loss of $17.3 million, or $0.78 per share, compared to a net loss of $8.3 million, or $0.38 per share, in the first quarter of fiscal 2024.
Key financial metrics revealed a decrease in same-store sales by 7.8% and a slight drop in gross profit margin to 30.9% from 31.2% in the prior year. The company attributed these declines to higher store occupancy expenses and lower merchandise margins. Despite a reduction in overall selling and administrative expenses, the percentage of these expenses relative to net sales increased due to the lower sales base.
Looking ahead, Big 5 Sporting Goods Corporation anticipates continued macroeconomic challenges impacting consumer spending in the second quarter. The company expects same-store sales to decline in the low to mid-single-digit range and projects a net loss per share between $0.75 and $0.90. Management remains focused on operational efficiency and catering to price-conscious consumers with new seasonal products.
Overall, Big 5 Sporting Goods Corporation is navigating a challenging retail environment with strategic adjustments and a cautious outlook for the upcoming quarters.