BGFV - Earnings call transcript Q3 2024 | Big 5 Sporting Goods Corporation

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Operator

Good day, ladies and gentlemen. Welcome to the Big 5 Sporting Goods Third 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 ahead. for and Miller. I'd go to this time, over remarks like floor turn Please the

Steven Miller

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

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

Barry Emerson

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

the in forecasted involve differ unknown and Forward-looking known Form from release Securities forward-looking current our of other be to behalf. press Exchange may our refer risks that obligation results. These on a risks future and no quarterly may on find reports XX-Q periods in uncertainties XX-K, fully measures materially described uncertainties our by more that statements to update reports undertake made revise include actual Please annual those We or certain call. to or to non-GAAP on any time our us in from our statements and with and reconciliation and results cause financial referenced filings to our time Form Commission. and today's

Steven Miller

you, Barry. Thank

X.X%. $XXX.X influencing in down reflected headwinds were for ongoing consumer results with million third Our economic year, same-store the $XXX.X million Net quarter to spending. quarter third the prior compared sales sales

inflationary our product merchandise the which category the our categories believe major across relatively quarter, each a trends first that pervasiveness in speaks of that the core saw encouraged customer. sequential has remain continued sales our improvement quarter quarter. month pressures are in a fourth of we're to perspective, we our the we From consistent Although sales trend same-store through pressure, impacting third year, this by under the

Despite sales down goods footwear our digits, overall mid-single declining ticket the transaction down average X% Our apparel count was single approximately and each stable, categories hard were pressure, low and our while relatively approximately X%. was down digits. remained

in Our decreased the XXX to year. prior points third basis compared merchandise margins quarter the

focused profit mindful the need gross dollars, sales on optimizing line we're drive this While top our are challenging of we to in environment.

are looking to areas where carefully across benefit and believe to energizing conditions. We we responsive we our pricing evaluating by sales categories strategies from being can market target

to job inventory. do team Our excellent managing an continues

ongoing sales swiftly respond down us inventories end As reflecting of disciplined will our improve. to when were to to us approach opportunistic macroeconomic consumer our flexibility evolving year-over-year, buys conditions levels and capitalize the efforts with align well positioned demand on keep of inventory X.X% the our quarter, performance. This provides to

the the outlook. versus the quarter of compared the single of XX% our fourth snow quarter. course positive experienced same-store year. and which impacted sales Now XXXX our commenting extraordinarily sales of weather fourth in a single digits to low digits on lack products, range were prior Last to anticipate down over We markets year, negative fourth of that warm winter-related quarter, the significantly nearly low

macroeconomic outlook normalized it continuation more consumer from year, also our we challenges While anticipates the this should that weather of anticipates a spending. persistent benefit to

slow help an Thanksgiving a to been a traditionally strategy season. year, shift To in and period. compresses account energize holiday has been ahead which what pressured Additionally, and consumer, what distracted are for adjusting in this the holiday sales calendar falls activity effort in the stimulate of traditional this our has Thanksgiving the we late seasonally promotional shopping

quarter. trend are face this sequential that our season. each the has year. sales And inventories I challenging holiday environment, quarter for well to the In fourth encouraged closing, as the positioned we although mentioned, are believe same-store by improvement We continued a continue into we in

been managing has assortments. to our clearance us enabled product in enhance We and effective that product through have

particularly of in trending, fall are the number are sales our early with A product categories apparel. excited our contributing in and improvements winter the rates we and to our

on of has we aspects been continues we focus of By control. positioned within well spending. through that are Our and discretionary this navigate are to business doing managing current be the our so, our believe to period constrained

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

Barry Emerson

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

distribution XXXX The decrease in prior margin in margin and and of year-over-year points gross XX.X% expense versus expense, occupancy profit of lower reduction basis third XXX gross the Our the fiscal incentive store reflected lower XX.X% year merchandise the accruals. XXXX third higher into profit reflected administrative primarily margins The and prior capitalized quarter percentage a primarily $X.X as selling legal including in third to sales. compared compared quarter reduced million Overall, of costs year. of the to inventory last for expense the year. net and performance-based decreased quarter

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

within expenses to on continue environment. We control, focus economic managing considering our challenging the the

on store liquidity no per covenants. charge million noncash debt our basic charges million a $XX.X $X.XX line. of share. tax deferred and million a as $X.XX or of or $X.X impairment a Net assets share. of our fiscal per of well Now as related share for charge $X.XX the loss quarter bottom for or XXXX and to have was the basic or third included operations, noncash noncash valuation basic $XX.X per establishment allowance asset looking impact at These

allowance comparable in the for versus $XXX.X for including months XXXX we in months of net to valuation $X.X year. Same-store in $X.XX the of quarter share. EBITDA the period first For positive basic X negative the third period first the in fiscal million of Net adjusted deferred tax noncash compared million fiscal or I $X.X the million Net first share, sales negative XXXX. decreased XXXX $X.XX were months loss per charge net quarter XXXX of XXXX, to compared last of and months XXXX X X X last third of or quarter the $XXX.X fiscal million of in generated mentioned, the purposes, first store last sales for EBITDA reviewing $XX.X third results Briefly year-to-date Adjusted million comparison income our million EBITDA million of was positive for diluted compared $X.X last year. EBITDA year. comparable asset $XX was the period the impairment assets noncash sales year. million the XX.X% per of for was of to the $XX.X

Turning to the balance sheet.

third the of environment. fiscal our the reflects This X.X% response soft of our end Reviewing the at inventory in reduction XXXX efforts to manage sales year-over-year. lower merchandise to quarter decreased inventory Our excluding center in CapEx, of hardware million store-related capital for stores, and equipment and totaled remodeling, X first new spending, our software acquisitions, months primarily representing distribution the purchases. noncash $X.X computer investments fiscal XXXX, levels

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

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

in funding cash period, compares reduced activities provided fiscal $X.X The to in current XXXX. first primarily by the Now period looking comparable loss operating decrease months last provided year. by of by partially the This our of at million X a inventory. offset to cash operating cash net Net net flow. of activities the million is $XX.X merchandise was attributed in

remains XXXX facility Our million. of balance We borrowings and the X our end balance sheet of at fiscal under third cash of healthy. $X the had a quarter credit

execute we focused a As healthy and maintaining financial we condition. on navigate our this flexible environment dynamic market remain strategy, and

moment Now a on I'll spend guidance.

low low For in range to expect fourth XXXX single to fiscal digits fourth XXXX the the same-store we quarter. quarter, digits compared positive the single of negative sales

As Steve our headwinds sales mentioned, macroeconomic that guidance will reflects an expectation same-store continue.

weather expect we benefit our winter last will relative year. While to that normalizing also from results

X XXXX establishing net anticipate fiscal income we realizing fiscal which in will the range provision share the deferred do $X.XX. in quarter, for connection result valuation quarter. a benefit this any allowance tax a of tax we not XXXX in quarter related In with assets, quarter to to fiscal fourth third basic expect approximately per basis, the $X.XX in XX,XXXth loss of tax On the

an $X.XX. share debt the loss tax tax of effective comparison not expect estimated quarter XX.X%, adjusted rate to prior which XX,XXXth was asset of of share deferred For XX,XXXth by purposes, valuation $X.XX fiscal per loss in allowance. the basic assuming basic quarter This compares per fiscal impacted we period net $X.XX, range to

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

Steven Miller

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

Operator

concludes This today's teleconference.

this participation. again time. you You for may disconnect Thank lines your your at

Big 5 Sporting Goods (BGFV) 29 Oct 242024 Q3 Earnings call transcript