Big 5 earnings, comps slide

EL SEGUNDO, Calif. Big 5 Sporting Goods Corp. today reported that net sales for the second quarter ended July 1 increased 2.9% to $217.8 million from net sales of $211.8 million for the second quarter of fiscal 2006. Same-store sales declined 0.2% for the second quarter, representing the company's first quarterly decrease in same-store sales in over eleven years.

Net income for the second quarter of fiscal 2007 was $5.9 million, or 26 cents per diluted share, versus net income of $7.4 million, or 33 cents per diluted share, for the second quarter of fiscal 2006.

For the twenty-six week period ended July 1, net sales increased $15.9 million, or 3.8%, to $434.9 million from net sales of $419 million in the same period last year. Same-store sales increased 0.3% in the first 26 weeks of fiscal 2007 versus the same period last year. Net income was $13.5 million, or 59 cents per diluted share, for the first 26 weeks of fiscal 2007, compared to net income of $13.4 million, or 59 cents per diluted share, in the same period last year.

For the third quarter of fiscal 2007, the company expects to realize same-store sales growth in the low single-digit negative to low single-digit positive range and earnings per diluted share in the range of 27 cents to 35 cents. Third quarter guidance assumes that sales will continue to be challenged by macro-economic issues affecting the consumer environment and, compared to the prior year, reflects higher administrative expenses to support the company's overall growth and financial reporting initiatives. For the fiscal 2007 full year, the company expects to realize same-store sales growth in the low single-digit negative to low single-digit positive range and earnings per diluted share in the range of $1.22 to $1.42.