Lower demand for firearms and ammo at Big 5 Sporting Goods
Big 5 Sporting Goods announced that their fourth-quarter sales results were affected by a lower demand year-over-year for firearms and ammunition products as well as a highly promotional retail holiday environment.
The company reported net sales of $248 million, an increase of 1.8% from $243.6 million for the prior-year quarter. Same-store sales decreased 0.5% for the quarter versus the prior year period.
The company now expects to realize earnings per diluted share in the range of $0.21 to $0.23. This guidance reflects anticipated expenses associated with the development of the company's new e-commerce platform of approximately $0.01 per diluted share.
"Our sales results for the fourth quarter reflect the anticipated impact of cycling against the surge of firearm and ammunition sales last year, as well as the unfortunate lack of winter weather across our western markets," said chairman, president and CEO Steven G. Miller. "For the quarter, same store sales in our apparel category increased in the low double-digit range, footwear sales were slightly positive and hardgoods sales decreased in the mid-single-digit range, primarily due to lower demand year-over-year for firearms and ammunition products. Given the challenges that we faced during the quarter and the highly promotional retail holiday environment, we feel pleased that we appear positioned to deliver another quarter of earnings growth through improved product margins and controlled operating expenses."
Big 5 is a leading sporting goods retailer in the western United States, operating 429 stores in 12 states under the "Big 5 Sporting Goods" name.