BGFV - Earnings call transcript Q4 2024 | Big 5 Sporting Goods Corporation

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Operator

Good day, ladies and gentlemen. Welcome to the Big 5 Sporting Goods Fourth 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 fiscal Thank an the our Today, you, outlook will financial of for fourth our XXXX. first for review afternoon, well fiscal operator. everyone. XXXX we XXXX quarter as conference Good fourth call. the quarter of results quarter Welcome as provide

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

Barry Emerson

Thanks, Steve.

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

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

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

Steven Miller

you, Thank Barry.

Net top persistent which been $XXX.X performance. middle spending. in sales a with sales Our discretionary guidance These same-store million headwinds, fourth line quarter results reflect compared year, for have to range the of down were to in million were previously quarter announced consumer prior the $XXX.X impacting of continuation our the our X.X%. macroeconomic ongoing consistent delivering earnings the with expectations, our despite fourth challenges sales

area drought-like were that the quarter particularly experienced product winter-related the led stores over The the tragic conditions wildfires a huge contributing our last expectations to our to Greater dry environment month. Additionally, that in devastated as factor where were across southern winter Angeles we weather conditions. of conditions the were soft tier unfavorable, fourth Los relative to sales

Looking at hard goods major apparel basis, declined down on X.X%. categories same-store merchandise our X.X%, X.X% was footwear and decreased a

was sale X.X% down average down X.X%. with Our transactions

compared year. decreased the Our merchandise XX face on points of in In fourth the challenges, we focused prior the ongoing quarter basis dollars. how profit optimize to to sales margins remain gross best

to with down efforts our year-over-year, network across We sales. to orientation. inventory more our productively buying opportunistic to with quarter that on maintaining levels our ended while us align reflecting customers' with align capitalize deploy the X.X% This opportunities positioning value inventory inventory enables flexibility

This our to As on to already XX stores part store our driving efficiencies initiatives, meaningful stores. resources strategic quarter. our in the have including continue capital best-performing broader inventory productive we our to our first X portfolio We of reallocate anticipate cost most rationalization strategic across network. to in us XXXX, enables closed focus and locations that footprint closing we locations while our fiscal optimize

improvement in Turning discretionary Sales fiscal that macroeconomic yet as consumer see the challenged have XXXX. the remain to spending. we our to conditions of affecting are trends beginning

especially business, winter in which conditions. has our weather soft responsive last year. to very to significant quarter first to category to Consumer continued Additionally, performance be is this highly relative is course, and, our spending of discretionary

sales due with snowfall. well markets below our distinct to a continuing experience weather in variances to southern experienced our have geographic We bifurcation product winter normal

positioned enhancements inventories seasons, assortments. meaningful ramp-up with baseball the this of business including believe product balance are for become spring-related to We we our business. transition key still of the the activities, is transition winter positive the as our Over drivers although our quarter, well potentially our to

business our approach very inventory to remain navigate this we expenses growth closely continue focused elements as control, We margins, most our levels. drive working within including the focused and our current improve. dynamic business we closing, environment, conditions strengthens on ability believe to manage of In to the merchandise as

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

Barry Emerson

Steve. Thanks,

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

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

million administrative costs fourth primarily labor and to fiscal expense selling year. a related prior the and million for compared XXXX The the $X.X insurance of reflected settlement. gain lower $X Overall, to reduction quarter decreased an year-over-year

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

our challenges. considering ongoing control, We economic managing continue within expenses on the focus to the

of quarter per quarter was $XX.X compared line. fourth of our negative last the loss at million income for fiscal Net XXXX quarter related looking which tax XXXX, an Adjusted $X.X $X.XX third reflect $X.X basic fourth fourth million. the XXXX net $X.XX of the bottom Net gain share an of insurance does tax included income benefit. negative quarter for reflects of fourth an in XXXX quarter the to settlement. the tax $X.X the adjusted or allowance the to year. Because basic XXXX million basic fiscal This the not EBITDA of established $XX.X in a year. was quarter loss EBITDA million to fiscal share, of fiscal of compares Now related fiscal quarter fourth to in $X.XX loss assets valuation the for benefit in fourth per share of deferred million a or last net loss per

XXXX million X.X% compared full Briefly sales basic $XX.X net was noncash sales charge of or of gain prior results or This share settlement. with insurance fiscal versus share basic $X.X to of million the our for million share. EBITDA deferred negative third a included related was prior $XXX.X establishment for the loss recorded sales positive million Net year the valuation per of prior in $X.XX allowance compares $X.X for an for XXXX. year XXXX period. loss quarter, along a to $XX.X per XXXX comparable to basic or a related the the for assets per Adjusted were for compared and the full Same-store fiscal reviewing fiscal to aforementioned in $XX.X $X.XX XXXX tax year year. Net million net million $XXX.X in $X.XX fiscal to decreased the million year.

sheet. Turning balance to the

of environment. year-over-year. X.X% of fiscal XXXX our inventory quarter reduction decreased efforts to reflects in at manage inventory end lower the the the merchandise sales levels fourth response soft This Our to

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

the in remodeling For expect we XXXX million, year, the full investments $X in of range store-related CapEx $X million primarily. representing to

our the $XX.X to decrease cash cash XXXX. a This $XX.X Net activities larger loss flow. of looking in provided current year. used was net operating last was operating in compares activities primarily The million by cash million attributed Now at to net period. in fiscal

credit with our $XXX In of extended matures million December of which America, amended Bank in and December agreement XXXX, we XXXX.

cash us credit $XX.X strategy. facility environment and flexibility had December of our this our navigate of we dynamic this execute market as provides borrowings agreement balance credit million and under a million. of As $X.X This we financial year-end,

Now I'll a moment guidance. spend on

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

of through first $X.XX no Our per basic reflects benefit XXXX basis, an per same-store macroeconomic period reflects we quarter. net $X.XX. first basic to tax the for of headwinds range the On share $X.XX, the which quarter that continue sales loss net to compared first fiscal guidance quarter expectation XXXX expect will in fiscal that loss share

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

Steven Miller

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

Operator

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

You now lines. your may disconnect

Big 5 Sporting Goods (BGFV) 25 Feb 252024 Q4 Earnings call transcript