| Item 7.01 | Regulation FD Disclosure. |
Big 5 Sporting Goods Corporation (“the Company”) issued same store sales and earnings guidance for its fiscal 2020 first quarter on February 25, 2020. Beginning on March 20, 2020, the Company has closed more thanone-half of its retail store locations in response to state and local shelter orders related to theCOVID-19 outbreak. The closure of additional stores may be required if additional orders are issued. The Company’se-commerce business is continuing. Because of the anticipated material negative impact ofCOVID-19 on the Company’s financial results and the uncertainty related to its duration, the Company is withdrawing its fiscal 2020 first quarter guidance. The Company is not providing updated guidance for its fiscal 2020 first quarter at this time.
Forward Looking Statements
Except for historical information contained in this Form8-K, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties and other factors that may cause Big 5’s actual results in current or future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, changes in the consumer spending environment, fluctuations in consumer holiday spending patterns, increased competition frome-commerce retailers, breach of data security or other unauthorized disclosure of sensitive personal or confidential information, the competitive environment in the sporting goods industry in general and in Big 5’s specific market areas, inflation, product availability and growth opportunities, changes in the current market for (or regulation of) firearm-related products, disruption in product flow, seasonal fluctuations, weather conditions, changes in cost of goods, operating expense fluctuations, increases in labor and benefit-related expense, changes in laws or regulations, including those related to tariffs and duties, public health issues (including those caused byCOVID-19), lower than expected profitability of Big 5’se-commerce platform or cannibalization of sales from Big 5’s existing store base which could occur as a result of operating thee-commerce platform, litigation risks, stockholder campaigns and proxy contests, risks related to Big 5’s leveraged financial condition, changes in interest rates, credit availability, higher expense associated with sources of credit resulting from uncertainty in financial markets and economic conditions in general. Those and other risks and uncertainties are more fully described in Big 5’s filings with the Securities and Exchange Commission, including its Annual Reports on Form10-K and Quarterly Reports on Form10-Q. Big 5 conducts its business in a highly competitive and rapidly changing environment. Accordingly, new risk factors may arise. It is not possible for management to predict all such risk factors, nor to assess the impact of all such risk factors on Big 5’s business or the extent to which any individual risk factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. Big 5 undertakes no obligation to revise or update any forward-looking statement that may be made from time to time by it or on its behalf.
