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Dec 29, 2024
Big 5 Q4 2024 Earnings Report
Big 5 Sporting Goods Corporation reported a decrease in net sales and a net loss for the fourth quarter of fiscal 2024, with same store sales also declining.
Key Takeaways
Big 5 Sporting Goods Corporation reported a net loss of $20.9 million for the fourth quarter of fiscal 2024, or $0.95 per basic share, compared to a net loss of $8.9 million in the prior year. Net sales decreased to $181.6 million from $196.3 million in the fourth quarter of fiscal 2023, with same store sales declining by 6.1%.
Net sales for Q4 2024 were $181.6 million, a decrease from $196.3 million in Q4 2023.
Same store sales decreased by 6.1% in Q4 2024 compared to Q4 2023.
The company reported a net loss of $20.9 million, or $0.95 per basic share, in Q4 2024.
Gross profit margin decreased to 28.2% in Q4 2024 from 30.2% in Q4 2023, primarily due to higher store occupancy and distribution expense, and lower merchandise margins.
Big 5
Big 5
Forward Guidance
For the fiscal 2025 first quarter, Big 5 Sporting Goods Corporation expects same store sales to be down in the mid to high single digit range and anticipates a net loss per basic share in the range of $0.75 to $0.85.
Positive Outlook
- Merchandise assortment is believed to be well positioned for the spring season.
- Continued focus on disciplined operational execution.
- Amended and extended credit agreement with Bank of America, maturing in December 2029.
- Efforts to manage inventory levels relative to sales, resulting in a 5.6% decrease in merchandise inventories.
- Store base optimization efforts, with 8 store closures in Q1 2025 and approximately 7 additional closures expected in fiscal 2025.
Challenges Ahead
- Same store sales expected to be down in the mid to high single digit range for Q1 2025.
- Macroeconomic headwinds are expected to continue impacting discretionary consumer spending.
- Continuation of inconsistent and unfavorable weather patterns, particularly across the southern tier of the company's footprint.
- Expected net loss per basic share for Q1 2025 in the range of $0.75 to $0.85, compared to a net loss of $0.38 in Q1 2024.
- No new store openings are expected in fiscal 2025.