BGFV - Earnings call transcript Q1 2024 | Big 5 Sporting Goods Corporation

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Operator

Good day, ladies and gentlemen. Welcome to the Big 5 Sporting Goods First Quarter 2024 Earnings Results Conference Call. Today's call is being recorded.

With us today are Mr. Steve Miller, President and Chief Executive Officer; and Mr. Officer X Financial Goods. Chief Emerson, of Sporting Big Barry introductions, opening to Mr. At for and I'd to this time, over remarks like conference turn the Miller. go sir. Please ahead,

Steven Miller

our to conference Thank quarter. XXXX for I harbor the the as the safe fiscal turn review everyone. provide Good of you, results call Welcome will quarter Barry as operator. our financial now first Today, to call. over second XXXX quarter first we an will afternoon, for read our statement. to well outlook

Barry Emerson

Thanks, Steve.

for statements fact, Litigation made Securities provisions historical constitute plans of may harbor make any Private statements we Except and Reform remarks Act about pursuant forward-looking expectations, safe the that to of the our XXXX. future of prospects

cause to in and Forward-looking statements involve materially known differ and unknown actual may future current our periods risks forecasted that from results. and results uncertainties

the risks be in uncertainties other quarterly on described time forward-looking Form These XX-Q XX-K, may or on statements We update to our to any revise from annual with and those fully our our our include us on Form undertake or no by reports Securities behalf. that and and time obligation made Exchange Commission. more reports filings

Steven Miller

you, Thank Barry.

consistent a were is results guidance quarter to our reflect first Our consumer discretionary continue challenging and that environment macroeconomic with pressuring spending.

impacted over course the of Our across many weather our business generally also extreme results of were was volatility the by to our markets unfavorable that quarter.

million million compared for XX.X%. $XXX.X the $XXX.X sales year, quarter sales to were with down Net the first prior in same-store

second by XXXX. first negatively this XXXX the basis our the shift quarter As from our of were the XXX of anticipated, shift impacted same-store Easter to calendar the when by of stores calendar We points. sales impacted quarter were holiday roughly closed first believe sales comparisons quarter

down a footwear XX% and down perspective, was was Hardgoods approximately apparel down was category approximately XX%. XX%. approximately From

discretionary spending believe ticket are soft environment. transaction low down slightly which was digits, we our year-over-year, we up reflects While double our that average encouraged the was count

that more relative In the with focus sales merchandise levels managing efforts healthy over. sales have we We the line have to face achieved results the the were expenses. our pleased aspects from continued headwinds, of we maintaining control margins, the top optimizing in inventory and to business we on of relatively

For grew by the points prior our the we first XX quarter, basis margins nearly merchandise year. versus

Our achieve winter-related product while product particularly the our that overall also following levels we the this strong also gains of reducing our from this as as and margins sell-through Margins winter merchandise season were prior of margin the XX.X% benefited end category quarter. inventory strong in winter management, pleased year-over-year to freshness inventory season. benefited were of year's from by

the sales first management to be on rates we've important always A for million by large focused mitigate to us, particularly selling particularly contributor the expense minimum challenging focus this resulted and store environment. reduced pressures inflationary substantial one markets. hours, impact from closely expense we savings quarter the been continues of in managing our focal of and year-over-year. strengths, Diligent point another to $X.X is given our labor administrative management has expense across and now, been our our and Expense increases wage which

of calendar in ongoing same-store Easter being sales date, sales digits, open extra a from and to running including to shift spending, that the day the the benefit effects Turning in quarter discretionary single In macro continued consumer to to we have from the high impacting feel second holiday. trends. now second quarter are the the related are current down an headwinds

our key We higher The and always the along start product the we and to of summer. Memorial positive Father's inventory revolves first is our surrounding quarter for business. the periods quarter Day the about around period position transition of a half second Day volume with low seasons. assortment volume The second as feel relatively very

over potential of Warmer store the the weather strong to to start unfavorable driver spending us. and were traffic drier of factors when relatively for has of the a balance summer last quarter at year the be these and especially compared

optimistic from year, this our We are business that more cautiously weather normalized benefit will patterns.

our convenience, in customers will and, in positive said, focuses and We with conditions spending of to be near weigh value our business resume shareholders. the service selection, create which the on term confluence optimal the That turn, will improve, sales providing primary earnings that position of model, mix growth value, to on us that are and discretionary for when proven contending macroeconomic variables our challenge patterns. with continuing believe

sales, work expenses. we and margins, to focused While merchandise levels diligently remain managing continue we hard our inventory to on will our energize

now I'll that, our provide Barry additional first quarter and regarding to turn performance quarter details to it With second outlook. over

Barry Emerson

Steve. Thanks,

profit million million of the $XX.X prior the to XXXX Gross fiscal the for quarter in was quarter first year. $XX.X profit gross compared of first

first last the compared of XX.X% quarter quarter Our in XX.X% gross XXXX the year. of to first margin profit in

decrease margin distribution first prior the year the and of in inventory quarter XXXX points of quarter a reflected increased including capitalized higher as occupancy the The store net year. profit in primarily the percentage Merchandise sales. -- gross prior XX costs for versus basis versus expense, margins

The first year. selling the employee lower to the million reduction decreased Overall prior reflected expense $X.X quarter administrative XXXX and year-over-year for expense. primarily labor fiscal compared

XXXX selling sales, the first of in expense percent the XX.X% XXXX base. a reflecting sales and XX.X% lower net quarter versus first the administrative quarter was As in

to million the was XXXX. $X.X for first $X.XX of for XXXX basic or net or looking net to million first first the fiscal million compared bottom line, fiscal our in Now EBITDA a the the was of share in last quarter share. diluted year. $X.XX XXXX quarter positive first of This compares negative loss $X.X quarter per $X.X million at income of quarter $X.X per

Turning to balance the sheet.

year-over-year. end the XX.X% of the at inventory quarter first merchandise Our decreased

As levels lower our inventory to considering Steve indicated, sales efforts the environment. reduction reflects this manage soft

equipment and in software quarter first primarily fiscal and million investments capital the our noncash acquisitions, XXXX center CapEx, hardware Reviewing of for representing spending, excluding computer distribution purchases. remodeling, our $X.X totaled store-related

we full For XXXX CapEx $XX $XX in the the to of expect range year, million to million. continue

new approximately and optimize of X our in store XXX XXXX, X year. the approximately the stores end as anticipate operation For our to approximately balance in of stores fiscal efforts the at base part ongoing resulting of opening closing we stores

cash partially looking cash smaller by Now primarily year. operating year-over-year our $X.X operating in of in operating cash net fiscal flow. provided decrease period million XXXX. a to decrease comparable expenses. cash compares $XX.X by first at last of The the offset our net income, accrued reflected Net the activities quarter activities in lower provided flow by was This million in

the at quarterly quarter of end remains share. XXXX of credit we cash balance under fiscal up $X.XX facility per of our 'XX. $XX.X of dividend a Directors had a X healthy. of We end from QX cash the Our first the million Today, balance announced sheet $X.X declared our million, borrowings that Board at and of

I'll on guidance. spend Now a moment

For quarter. second same-store range the single-digit sales XXXX compared the the expect fiscal quarter, XXXX in second we to to decrease high

guidance of same-store continue impact will spending sales reflects the over the headwinds that an macroeconomic balance expectation Our to quarter. discretionary consumer

offset prior fiscal days net shift this will is from to to holiday, of quarter by our X Although be the the further the shifting of the comparisons benefit holiday sales benefit fourth July Easter into fiscal third calendar expected second this quarter year year.

loss to per XXXX second expected basic quarter share $X.XX, in which of is $X.XX basic range Fiscal of compares to XXXX second loss share the per net quarter $X.XX.

prepared That to back the will concludes now remarks. comments. our closing I Steve turn call for

Steven Miller

second and forward you, in Thank on quarter. joining look Big today's Sporting the X all our for appreciate to your Barry. Goods you Thank after with interest you us again call. of We conclusion speaking

Operator

Ladies joining conclude today's and us. you. this Thank conference. you Thank gentlemen, does for

You may lines. your now disconnect

Big 5 Sporting Goods (BGFV) 30 Apr 242024 Q1 Earnings call transcript