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Reports Fourth Quarter Same Store Sales Decrease of 0.5% – Narrows Fourth Quarter Earnings Guidance to a Range of $0.14 – $0.16 per Diluted Share, Including Charges of $0.03
Big 5 Sporting Goods Corporation (Nasdaq:BGFV), a leading sporting goods retailer, today reported sales results for the fiscal 2014 fourth quarter and full year ended December 28, 2014.
For the fiscal 2014 fourth quarter, net sales increased to $250.3 million from net sales of $248.0 million for the fourth quarter of fiscal 2013. Same store sales decreased 0.5% for the fourth quarter of fiscal 2014. The Company’s merchandise margins decreased approximately 10 basis points in the fiscal 2014 fourth quarter from the fourth quarter of fiscal 2013.
For the fiscal 2014 full year, net sales decreased to $977.9 million from $993.3 million for the prior year. Same store sales decreased 2.9% for the fiscal 2014 full year.
For the fiscal 2014 fourth quarter, the Company now expects to realize earnings per diluted share in the range of $0.14 to $0.16, including $0.01 per diluted share of anticipated non-cash impairment charges, $0.01 per diluted share of expenses associated with the development of the Company’s e-commerce platform and $0.01 per diluted share for a legal settlement charge. During the fiscal 2013 fourth quarter, the Company’s earnings per diluted share were $0.23, including expenses associated with the development of the Company’s e-commerce platform of $0.01 per diluted share. For the fiscal 2014 full year, the Company now expects to realize earnings per diluted share in the range of $0.68 to $0.70, including $0.03 per diluted share of anticipated non-cash impairment charges, $0.03 per diluted share of e-commerce development expenses and $0.01 per diluted share for a legal settlement charge, compared to earnings per diluted share for fiscal 2013 of $1.27 per diluted share, including $0.04 per diluted share for legal settlement charges and $0.02 per diluted share for e-commerce development expenses.
“After producing same store sales in the positive low single-digit range for our October and November periods, our holiday period sales declined in the low single-digit range, which brought our fourth quarter sales below expectations,” said Steven G. Miller, the Company’s Chairman, President and Chief Executive Officer. “Several factors adversely affected our holiday period sales, including weaker than expected sales of firearm-related products and soft sales in our winter-related business as a result of significantly warmer than normal weather throughout virtually all of our market areas prior to Christmas. In addition, we believe that our holiday sales were impacted by a highly promotional retail environment. For the quarter, same store sales in our apparel and footwear categories increased in the low single-digit range, and hardgoods sales decreased in the low single-digit range, primarily reflecting the softness of firearm-related products.
“We were pleased that despite the softer than anticipated sales and highly promotional environment, we generally protected merchandise margins and effectively managed inventory levels during the fourth quarter,” Mr. Miller continued. “Over the last few days of our fourth quarter, we did finally receive the benefit to sales of favorable winter weather across most of our markets. These favorable weather conditions continued through the New Year holiday and as a result, we are off to a very positive start to fiscal 2015.”
The Company expects to issue earnings results for the fiscal 2014 fourth quarter and full year by the end of February
