Big 5 4Q hurt by weak spending

EL SEGUNDO, Calif. Big 5 Sporting Goods today reported fiscal 2007 fourth quarter net sales of $232.1 million, compared to net sales of $234.5 million for the fourth quarter of fiscal 2006. Same-store sales declined 4.7% for the fourth quarter.

The company attributed the sales decrease to weakened customer traffic as a result of the challenging consumer environment.

Net income for the fourth quarter of fiscal 2007 was $6.2 million, or 28 cents per diluted share, compared to net income of $9.6 million, or 42 cents per diluted share, for the fourth quarter of fiscal 2006.

For the fiscal 2007 full year ended Dec. 30, 2007, net sales increased $21.5 million, or 2.5%, to $898.3 million from net sales of $876.8 million for fiscal 2006. Same-store sales decreased 1% in the fiscal 2007 full year versus the prior year. Net income was $28.1 million, or $1.25 per diluted share, for the fiscal 2007 full year, compared to net income of $30.8 million, or $1.35 per diluted share, in the fiscal 2006 full year.

"Our fourth quarter and full-year earnings are in line with our revised guidance and reflect the continued challenging macro-economic environment," said Steven Miller, the company's chairman, president and ceo. "Like many other retailers, we experienced weak consumer spending during the holiday selling season. This softness in the retail environment has continued into the first quarter of fiscal 2008. Although weather conditions have benefited sales of winter-related products, we have not experienced strength in many of our other product categories."

The company expects a first quarter same-store sales decline in the low to mid-single digit range and earnings per diluted share in the range of 17 cents to 23 cents. For the fiscal 2008 full year, the company expects a decline in same-store sales in the low to mid-single digit range and earnings per diluted share in the range of 75 cents to $1.00.