Wed, Oct 30, 5:10 PM (64 days ago)
In its Q3 2024 report, Big 5 Sporting Goods Corporation (BGFV) reported a net loss of $29.9 million, or $1.36 per share, contrasting sharply with a net income of $1.9 million in Q3 2023. This decline was driven by an 8% decrease in net sales to $220.6 million, attributed to persistent inflation affecting consumer demand and a 7.5% drop in same-store sales. Gross profit margins fell to 29.1% from 33.2%, impacted by higher occupancy costs and increased promotional activities. For the first nine months, net sales decreased 10.8% to $613.8 million, with a gross profit margin of 29.9%. Operating cash flow was positive at $9.1 million, down from $21.1 million in the prior year. The company maintained no outstanding borrowings on its revolving credit facility, holding $4 million in cash as of September 29, 2024, down from $17.9 million a year earlier. Looking ahead, Big 5 plans to open three new stores while closing eleven, reflecting ongoing adjustments in response to market conditions. The establishment of a $21.8 million valuation allowance against deferred tax assets adds to the financial uncertainties faced by the company.