We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Big 5 Shares Down 18% on Wider Y/Y Q4 Loss, 2025 Sales Outlook Dim
Read MoreHide Full Article
Shares of Big 5 Sporting Goods Corporation (BGFV - Free Report) have declined 17.8% since the company reported its earnings for the quarter ended Dec. 29, 2024. This compares to the S&P 500 index’s decline of 2.2% over the same time frame. Over the past month, the stock has declined 26.7% compared with the S&P 500’s 3.4% decline.
See the Zacks Earnings Calendar to stay ahead of market-making news.
The company incurred a net loss of 95 cents per share in the fourth quarter of fiscal 2024, wider than a loss of 41 cents per share in the year-ago period.
Big 5 reported net sales of $181.6 million for the fourth quarter of fiscal 2024, marking a 7.5% decline from $196.3 million in the prior-year period. Same-store sales decreased 6.1% year over year.
The company incurred a net loss of $20.9 million, wider than a net loss of $8.9 million in the year-ago period.
Big 5 Sporting Goods Corporation Price, Consensus and EPS Surprise
Gross profit for the fiscal fourth quarter declined to $51.2 million from $59.2 million in the prior-year quarter. Gross profit margin contracted to 28.2% from 30.2%, primarily due to higher store occupancy and distribution costs relative to sales and a 23-basis-point decline in merchandise margins.
Selling and administrative expenses decreased by $1 million from the previous year, largely due to lower labor costs and a $0.9 million gain from an insurance settlement. However, as a percentage of net sales, selling and administrative expenses increased to 39.3% from 36.9% due to the lower sales base.
Adjusted EBITDA stood at negative $16.4 million for the fiscal fourth quarter compared to negative $8.7 million in the same period last year.
Full-Year Update for BGFV
The company incurred a net loss per share of $3.15 in 2024, wider than a net loss of 33 cents per share in fiscal 2023. Net sales fell 10.1% to $795.5 million from $884.7 million in fiscal 2023, with a same-store sales decline of 9.4%.
The net loss widened significantly to $69.1 million from a net loss of $7.1 million in fiscal 2023. The full-year results included a $21.8 million non-cash charge related to the establishment of a valuation allowance on deferred tax assets. For 2024, Adjusted EBITDA was negative $36.7 million, down from a positive $7.3 million in fiscal 2023.
Management Commentary for BGFV
Chairman, president and CEO Steven G. Miller acknowledged the challenging retail environment and the company’s ability to manage margins and expenses despite declining sales. He noted that sales trends have remained under pressure in the first quarter of fiscal 2025, driven by macroeconomic headwinds affecting discretionary spending and inconsistent weather patterns, particularly in the southern part of the company’s footprint.
Looking ahead, Miller expressed confidence in Big 5’s merchandise assortment as the company transitions into the spring season.
BGFV’s Balance Sheet and Liquidity
Big 5 ended the fiscal fourth quarter with $13.8 million in borrowings under its $150 million credit facility, which was amended and extended in December 2024 and now matures in December 2029. The company’s cash balance stood at $5.4 million at quarter-end, down from $9.2 million in the prior-year period. Merchandise inventories declined 5.6% year over year, reflecting efforts to manage inventory levels in line with sales trends.
BGFV’s Fiscal 2025 First-Quarter Guidance
For the first quarter of fiscal 2025, Big 5 expects same-store sales to decline in the mid-to-high single-digit range compared to the prior-year period. The company cited ongoing macroeconomic challenges impacting discretionary consumer spending as the primary factor behind the guidance. It anticipates a net loss per share in the range of 75 cents to 85 cents.
Other Developments
Big 5 reported having 414 stores in operation at the end of the fourth quarter, reflecting eight store closures in the first quarter of fiscal 2025 as part of its store base optimization strategy. The company plans to close approximately seven additional stores during the remainder of fiscal 2025 and does not anticipate opening any new locations.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Big 5 Shares Down 18% on Wider Y/Y Q4 Loss, 2025 Sales Outlook Dim
Shares of Big 5 Sporting Goods Corporation (BGFV - Free Report) have declined 17.8% since the company reported its earnings for the quarter ended Dec. 29, 2024. This compares to the S&P 500 index’s decline of 2.2% over the same time frame. Over the past month, the stock has declined 26.7% compared with the S&P 500’s 3.4% decline.
See the Zacks Earnings Calendar to stay ahead of market-making news.
The company incurred a net loss of 95 cents per share in the fourth quarter of fiscal 2024, wider than a loss of 41 cents per share in the year-ago period.
Big 5 reported net sales of $181.6 million for the fourth quarter of fiscal 2024, marking a 7.5% decline from $196.3 million in the prior-year period. Same-store sales decreased 6.1% year over year.
The company incurred a net loss of $20.9 million, wider than a net loss of $8.9 million in the year-ago period.
Big 5 Sporting Goods Corporation Price, Consensus and EPS Surprise
Big 5 Sporting Goods Corporation price-consensus-eps-surprise-chart | Big 5 Sporting Goods Corporation Quote
BGFV’s Profitability and Expense Trends
Gross profit for the fiscal fourth quarter declined to $51.2 million from $59.2 million in the prior-year quarter. Gross profit margin contracted to 28.2% from 30.2%, primarily due to higher store occupancy and distribution costs relative to sales and a 23-basis-point decline in merchandise margins.
Selling and administrative expenses decreased by $1 million from the previous year, largely due to lower labor costs and a $0.9 million gain from an insurance settlement. However, as a percentage of net sales, selling and administrative expenses increased to 39.3% from 36.9% due to the lower sales base.
Adjusted EBITDA stood at negative $16.4 million for the fiscal fourth quarter compared to negative $8.7 million in the same period last year.
Full-Year Update for BGFV
The company incurred a net loss per share of $3.15 in 2024, wider than a net loss of 33 cents per share in fiscal 2023. Net sales fell 10.1% to $795.5 million from $884.7 million in fiscal 2023, with a same-store sales decline of 9.4%.
The net loss widened significantly to $69.1 million from a net loss of $7.1 million in fiscal 2023. The full-year results included a $21.8 million non-cash charge related to the establishment of a valuation allowance on deferred tax assets. For 2024, Adjusted EBITDA was negative $36.7 million, down from a positive $7.3 million in fiscal 2023.
Management Commentary for BGFV
Chairman, president and CEO Steven G. Miller acknowledged the challenging retail environment and the company’s ability to manage margins and expenses despite declining sales. He noted that sales trends have remained under pressure in the first quarter of fiscal 2025, driven by macroeconomic headwinds affecting discretionary spending and inconsistent weather patterns, particularly in the southern part of the company’s footprint.
Looking ahead, Miller expressed confidence in Big 5’s merchandise assortment as the company transitions into the spring season.
BGFV’s Balance Sheet and Liquidity
Big 5 ended the fiscal fourth quarter with $13.8 million in borrowings under its $150 million credit facility, which was amended and extended in December 2024 and now matures in December 2029. The company’s cash balance stood at $5.4 million at quarter-end, down from $9.2 million in the prior-year period. Merchandise inventories declined 5.6% year over year, reflecting efforts to manage inventory levels in line with sales trends.
BGFV’s Fiscal 2025 First-Quarter Guidance
For the first quarter of fiscal 2025, Big 5 expects same-store sales to decline in the mid-to-high single-digit range compared to the prior-year period. The company cited ongoing macroeconomic challenges impacting discretionary consumer spending as the primary factor behind the guidance. It anticipates a net loss per share in the range of 75 cents to 85 cents.
Other Developments
Big 5 reported having 414 stores in operation at the end of the fourth quarter, reflecting eight store closures in the first quarter of fiscal 2025 as part of its store base optimization strategy. The company plans to close approximately seven additional stores during the remainder of fiscal 2025 and does not anticipate opening any new locations.