Big 5 Sporting Goods (BGFV) Prelim. Q4 Revenue Outpaces Expectations

Big 5 Sporting Goods Corporation (Nasdaq: BGFV) reported sales results for the fiscal 2015 fourth quarter and full year ended January 3, 2016.

For the 14-week fiscal 2015 fourth quarter, net sales were $275.0 million, compared to net sales of $250.3 million for the 13-week fourth quarter of fiscal 2014. Same store sales increased 0.1% for the fourth quarter of fiscal 2015. The Company's merchandise margins increased approximately 20 basis points from the fourth quarter of fiscal 2014.

*** The Street was expecting Q4 revenue of $262.3 million.

For the 53-week fiscal 2015 full year, net sales were $1.03 billion, compared to net sales of $977.9 million for the 52-week fiscal 2014 full year. Same store sales increased 1.3% for the fiscal 2015 full year.

As a result of the fiscal year calendar, the fiscal 2015 fourth quarter included 14 weeks and the fiscal 2015 full year included 53 weeks, compared to 13 weeks and 52 weeks for the respective reporting periods in fiscal 2014. For purposes of reporting same store sales comparisons to the prior year, the Company uses comparable 14-week and 53-week periods.

For the fiscal 2015 fourth quarter, the Company now expects to realize earnings per diluted share in the range of $0.18 to $0.19, including $0.02 per diluted share of non-cash impairment and expenses related to evaluating store growth strategies and potential profit improvement opportunities. During the fiscal 2014 fourth quarter, the Company's earnings per diluted share were $0.13, including $0.04 per diluted share for legal accruals and $0.01 per diluted share for a non-cash impairment charge.

For the fiscal 2015 full year, the Company now expects to realize earnings per diluted share in the range of $0.68 to $0.69, including $0.06 per diluted share of charges for a legal settlement and expenses associated with the Company's publicly disclosed proxy contest, and $0.02 per diluted share of non-cash impairment and expenses related to evaluating store growth strategies and potential profit improvement opportunities. For the fiscal 2014 full year, earnings per diluted share were $0.67, including $0.04 per diluted share for legal accruals and $0.03 per diluted share for non-cash impairment charges.

“We are pleased with our fourth quarter performance and ability to generate positive sales and maintain merchandise margins in a highly competitive and promotional retail environment,” said Steven G. Miller, the Company's Chairman, President and Chief Executive Officer. “While sales started off softly in October and November, sales were positive over the 'Black Friday' week and very strong for the weeks of Christmas and New Year’s as we benefitted from favorable winter weather conditions throughout most of our Western markets. Same store sales in our apparel category increased in the high single-digit range and footwear sales increased in the low single-digit range for the period due to strong sales of winter-related products. Hardgoods sales decreased in the mid-single-digit range for the period. Customer transactions decreased in the low single-digit range and our average transaction size increased in the low single-digit range for the quarter. Additionally, we are pleased to have further strengthened our balance sheet at the end of 2015 as we effectively managed our inventory position, ending the quarter with preliminary per-store inventories down 2.9% from the prior year, and reduced borrowings under our credit facility by 17.3% year-over-year to $54.8 million at the end of fiscal 2015.”

Mr. Miller continued, “Although we are only in the second week of the first quarter of fiscal 2016, we are very pleased with our start to the period, as sales continue to benefit from favorable weather conditions in many of our markets.”

The Company expects to issue earnings results for the fiscal 2015 fourth quarter and full year in early March.

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