E-commerce costs cut Big 5 net income; 12 net new stores planned

El Segundo, Calif. – Expenses associated with the development of its e-commerce platform helped drive net income at Big 5 Sporting Goods Corp. down 59% to $2.5 million in the second quarter of fiscal 2014, from $6.1 million in the same quarter a year earlier.

For the fiscal 2014 full year, Big 5 currently anticipates opening approximately 12 net new stores

For the fiscal 2014 second quarter, net sales were $231.2 million, down 4% from net sales of $239.9 million for the second quarter of fiscal 2013. Same-store sales declined 4.9% for the second quarter of fiscal 2014.

Sales results for the second quarter of fiscal 2014 reflect a continued reduction in demand for firearms, ammunition and related products, as well as general softness in the overall consumer environment. Second quarter sales also reflect the small unfavorable impact of the calendar shift of the Easter holiday, during which the company's stores were closed, out of the first quarter and into second quarter 2014.

Big 5 anticipates same-store sales growth ranging from slightly negative to slightly positive for the third quarter.


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