Big 5 Sporting Goods Q2 profit up; revenue disappoints

El Segundo, Calif. -- Big 5 Sporting Goods reported that its second-quarter profit more than doubled from a year ago on higher sales and expanding margins, but its revenue fell short of expectations.

The sporting goods’ retailer said its net income increased to $6.1 million for the period ended June 30, up from $2.6 million in the year ago period. Net sales climbed 5.9%, to $239.9 million, below the $244 million expected by analysts.

Same-store sales increased 4.4%, compared to a 5.2% lift in the second quarter of the previous year. A shift in the timing of Easter and ongoing merchandise and marketing initiatives helped drive strong net sales results, although a shift in the Fourth of July had a negative impact.

"We are pleased with our second quarter financial results as we continued to see the underlying performance of our business strengthen," said Steven G. Miller, the company's chairman, president and CEO. "We experienced a slight improvement in customer traffic and a mid-single-digit increase in average sale, and our same store sales improved for each of our major product categories of apparel, footwear and hardgoods."

Looking ahead, Big 5 Sporting Goods forecasts same-store sales in the positive low single-digit range and earnings per diluted share in the range of $0.40 to $0.45. The company said it plans to open four new stores and close one store, as part of a relocation, during the quarter.

 

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