BGFV - Earnings call transcript Q2 2024 | Big 5 Sporting Goods Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, ladies and gentlemen. Welcome to the Big 5 Sporting Goods Second 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

sir. introductions, opening to Mr. At ahead, for and Miller. I'd go to this time, over remarks like conference turn Please the

Steven Miller

to Thank an the our Today, you, outlook will financial of for second our third for review afternoon, well fiscal operator. everyone. XXXX we XXXX quarter as conference Good second call. the quarter results quarter. Welcome as provide

safe the call over Barry harbor I statement. our will turn now to to read

Barry Emerson

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

our filings materially Form in Form update to the our fully actual any on future or us periods Forward-looking made quarterly that We and those forecasted uncertainties annual forward-looking revise behalf. from Exchange and reports from results with on Securities XX-K, and involve statements reports our time may XX-Q statements and cause no to unknown current differ or known These by in our more to Commission. be our risks undertake include risks results. described and obligation time and may uncertainties on other that

Steven Miller

results Barry. to pressures consumer guidance quarter you, to Thank We with impact reported of sustained discretionary that our feel consistent were second as the we continue spending.

compared in our to Net impacted of sales prior million shifts couple million There with second quarter. $XXX.X down calendar $XXX.X the second X.X%. same-store a were for were quarter year, the sales that

of year second holiday when extra sales occurred as an opposed year. as our in quarter we last Easter closed, the benefited the April, from In to stores were this QX day

July of further was benefit the year However, of the shift the this at of versus into third the last. Xth this the quarter quarter holiday end by offset

approximately X% trends major apparel XX%. approximately approximately and our down category merchandise were across hardgoods consistent product down a X%, categories, with perspective, down footwear From fairly each of

single average we our single largely impacting the down high reflects digits, which digits, ticket down challenges was was believe while macroeconomic Our low consumers. transaction count broad-based

the a basis points year, with in decreased Our compared XX.X% inventory. merchandise quarter and quarter to prior reduction closed we the margins in the XX second

our that also keenly better focused on positioned sales keeping Given trending. well headwinds, with advantage inventory enables gross to the may our team the us in levels sales profit of our present marketplace. is This while dollars aligning to opportunistic us optimize buys potential take current

our only shift started over also on benefited summer commenting we summer across quarter. being not year, a heat of July our the from strong third when geography. sales comparisons of last quarter. third comping have Now strongest the July, against Xth softened began calendar weekend weather Since sales long as holiday we much to product benefited as We very but of our favorable of contributed which the month the wave sales quarter then, from exceptional year's last from

sales X%. currently same-store tracking approximately Quarter-to-date down are

the ongoing which mid-single-digit quarter quarter Although affecting This reflected range. benefiting year-over-year third as progresses. economic same-store easing anticipate cautious we for we guidance, to pressures from remain is comparisons the our the in sales in decline consumers, given calls

gas, pressures our a question environment is There in no rates. continuation inflationary interest groceries impact persistent core macroeconomic cumulative is of of areas rent, reflects the key operating current challenges. that feeling as and The customer such

points given are we price times, these we trade from believe value attractive and our down In proposition, benefiting that likely activity. strong

turn, with for this navigate the to the tide contraction enough simply the offset through have we actively not widespread discipline impacting not large. discretionary managing We're that been large spending we're in retail business industry gains is cycle. to the these However, at as waiting

Sports for Day and crucial assortment positioned product holiday. well fall meet demand Team the is periods, Labor back-to-school, to Our upcoming including

to expect emerge earnings will position current strategies to this We of and discretionary growth. return our period current spending, us operational efficiencies as and that sales we from constrained

At priority of sheet, a that our a time, believe balance the we step this given prudent financial maintaining the our of environment challenged provide and uncertainty the suspension healthy the duration flexibility. added dividend of of is to macroeconomic

return in shareholder remain commitment shareholders. continue steadfast We evaluate our And as always opportunities will maximizing to have, to we value. we to to value

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

Barry Emerson

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

the second store the occupancy quarter profit XXXX percentage as in XX.X% sales. of including margin primarily profit and gross capitalized versus margin the last decrease in year higher XX.X% compared expense, quarter inventory distribution gross a into to Our costs second reflected net of of in prior The year.

decreased year. incentive of prior Merchandise staffing the period. administrative XXXX quarter versus performance-based margins second for decreased lower labor year the reduced $X.X expense employee to prior compared quarter fiscal reduction, primarily The million and selling and basis accruals. reflected points the second XXXX XX the for Overall expense year-over-year and

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

backdrop to the control, remain diligently of expenses We stubborn committed within inflation. especially managing broad-based the our against cost

substantial particularly markets. increases across which store optimize as is minimum we our labor in wage rates to continue navigate We important hours,

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

million in of Same-store period last weeks in versus to our half the net were first sales sales $XXX.X compared year. results, XX.X% XX XXXX XXXX first half reviewing sales $XXX.X decreased Briefly first million the of last fiscal net of year. the comparable

the $X.XX the half of loss XXXX million of or year. was Net on the XXXX million $X.X million share basis. on for of first half in per a a compared share to year-to-date was or net compares last the $XX.X comparable positive This period $X.X to EBITDA per loss first for for million EBITDA period breakeven basis. negative XXXX a $XX.X of

the sheet. to Turning balance

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

primarily purchases. reduction the excluding and As store-related reflects to our our Steve efforts indicated, investments Reviewing sales million remodeling, of inventory $X.X in for acquisitions, first distribution manage fiscal spending, this levels center lower CapEx, totaled soft and software computer in the to our environment. response hardware half equipment XXXX, representing capital noncash

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

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

cash decreased period. larger The the for used at reflected and This year. flow. of cash net compares half looking to primarily net activities merchandise first million activities fiscal operating used year, reduced by inventory in Now partially period in of of cash in cash Net operating our the comparable the $X.X current loss in for a XXXX. offset in a funding in operating accrued was activities million used $X.X decrease the last expenses, smaller

of healthy. Our had XXXX the balance position quarter of $X.X facility consistent borrowings end sheet remains of under the fiscal at X our at the million, We of second XXXX. cash QX and credit our with end balance a

decision our reflects macroeconomic healthy the cash work management Steve financial duration the dividend As suspend of condition challenging of objective we mentioned, to the maintaining climate. capital quarterly our as a through current

a I'll guidance. on moment spend Now

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

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

share in quarter range to Fiscal net prepared $X.XX, which $X.XX to XXXX XXXX our share $X.XX. of third income That is quarter compares per remarks. net loss third diluted per concludes the of expected basic

back call to now will I turn for comments. closing Steve the

Steven Miller

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

Operator

your participation. does Thank Ladies you. conclude teleconference. today's and gentlemen, you Thank this for

disconnect now your lines. may You

Big 5 Sporting Goods (BGFV) 30 Jul 242024 Q2 Earnings call transcript