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Sep 27, 2020
Big 5 Q3 2020 Earnings Report
Reported record third quarter results with net income of $28.4 million and EPS of $1.31.
Key Takeaways
Big 5 Sporting Goods Corporation reported record third quarter results, achieving the strongest sales and earnings performance in its 65-year history. Net income reached $28.4 million, or $1.31 per diluted share, compared to $6.4 million, or $0.30 per diluted share, in the same quarter of the previous year. The company benefited from increased consumer demand for fitness and outdoor recreational products, as well as substantial cost reductions.
Generated record third quarter net income of $28.4 million and earnings per diluted share of $1.31.
Ended the quarter with zero revolver borrowings and a cash position of $55.7 million.
Experienced a 14.8% increase in same store sales for the third quarter of fiscal 2020.
Doubled the quarterly cash dividend from $0.05 to $0.10 per share.
Forward Guidance
For the fourth quarter of fiscal 2020, the Company expects same store sales to be in the range of -5% to +5% and earnings per diluted share to be in the range of $0.35 to $0.60.
Positive Outlook
- Merchandise margins continue to trend positively.
- Expense reduction initiatives are expected to create significant operating leverage.
- Expects earnings to reflect expense savings primarily from reductions in advertising.
- Expects earnings to reflect expense savings primarily from reductions in store operating hours.
- Includes an after-tax insurance settlement benefit of approximately $2.1 million, or $0.10 per diluted share.
Challenges Ahead
- There is tremendous uncertainty impacting the consumer environment over the coming months.
- Uncertainty surrounding consumer spending for the upcoming holiday season.
- Potential for increased COVID-19 outbreaks and related restrictions over the course of the winter.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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