Wed, Feb 26, 6:25 PM (60 days ago)
Big 5 Sporting Goods Corporation (NASDAQ: BGFV) reported a significant decline in financial performance for fiscal 2024, ending December 29, 2024. Net sales fell by 10.1% to $795.5 million, with same-store sales decreasing 9.4%. The company recorded a net loss of $69.1 million, or $3.15 per share, compared to a loss of $7.1 million, or $0.33 per share in fiscal 2023. Gross profit margin decreased from 32.3% to 29.5%, influenced by inflationary pressures and increased operating costs. Selling and administrative expenses decreased slightly by 2.2% to $290.1 million, reflecting cost management efforts amidst reduced store count and operational challenges. Strategically, Big 5 is shifting focus toward digital marketing while reducing traditional advertising expenses. The company closed 11 stores in fiscal 2024, ending the year with 422 locations, and plans to close an additional 15 stores in fiscal 2025. The company also amended its credit facility with Bank of America, securing a $150 million revolving credit line until December 2029, but faces restrictions on dividend payments due to financial covenants. Key risks include intense competition, regional economic volatility, and supply chain disruptions. Future outlook remains cautious, with anticipated store closures and a focus on managing operational costs to navigate ongoing inflationary pressures.