The sporting-goods retailer said its net income declined 19 percent year-over-year, to $2.1 million, or 10 cents per diluted share, from $2.6 million, or 12 cents per diluted share, in the comparable period. Those results topped analysts’ expectations for diluted earnings per share of 3 cents. (Q1 ’16 EPS included a 1 cent write-off of deferred tax assets related to share-based compensation; Q1 ’15 EPS included 3 cents for a charge associated with the company’s proxy contest.)
Net sales were $241.4 million, a 0.4 percent gain over the comparable period and a beat on estimates for sales of $238.3 million.
Despite the better-than-expected results Big 5 Chairman, President and CEO Steve Miller noted that the company felt the impact of heavy liquidation sales at bankrupt competitors Sports Authority and Sport Chalet.
“We are pleased to exceed our second-quarter earnings guidance in a highly competitive and promotional retail environment,” Miller said in a release. “While sales across all of our major product categories of hardgoods, footwear and apparel were negatively impacted by the liquidation efforts of Sports Authority and Sport Chalet in our markets, we held merchandise margins flat with the prior-year period and maintained tight control of our expenses and inventory.”
The firm ended the quarter with per-store inventories down 9.1 percent year-over-year, while its same-store sales fell 1.7 percent.
“We are off to a strong start in the third quarter, with same-store sales for the quarter to date up in the high mid-single-digit range as we are beginning to benefit from numerous competitive store closures in our markets and customer recognition of the convenience, strong product assortment and value that Big 5 Sporting Goods offers,” Miller said.