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Jun 28, 2020
Big 5 Q2 2020 Earnings Report
Generated net income and earnings per diluted share for the second quarter of fiscal year 2020.
Key Takeaways
Big 5 Sporting Goods Corporation reported a strong second quarter with a net income of $11.1 million and earnings per diluted share of $0.52. The company managed the business through disruptions caused by COVID-19, including store closures and shifts in consumer demand. Same store sales increased 31.9% for fiscal July.
Second quarter net income of $11.1 million and earnings per diluted share of $0.52.
Quarterly cash dividend reinstated.
Fiscal July same store sales increased 31.9%.
Revolver borrowings of zero, with cash position of approximately $38 million as of the end of fiscal July.
Forward Guidance
The Company expects same store sales over the remainder of the fiscal 2020 third quarter to increase in the range of 5% to 15% compared to the comparable period during fiscal 2019. Assuming the Company achieves sales within that range over the remainder of the quarter, the Company would expect same store sales for the full third quarter of fiscal 2020 to increase in the range of 14% to 20% compared to the comparable period during fiscal 2019 and for earnings per diluted share for the quarter to be in the range of $1.00 to $1.30.
Positive Outlook
- Expense savings primarily from reductions in advertising.
- Expense savings from store operating hours reduction.
- Same store sales expected to increase.
- Earnings per diluted share expected to increase.
- Merchandise margins continue to trend positively.
Challenges Ahead
- Dramatic shifts in customer demand.
- Uncertainties due to unprecedented circumstances.
- Potential impact on consumer spending from the potential expiration of stimulus benefits.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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