Big 5 posts quarterly sales and earnings growth

EL SEGUNDO, Calif. Big 5 Sporting Goods today reported that net sales for the third quarter increased $8 million, or 3.6%, to $231.3 million from net sales of $223.3 million for the third quarter of fiscal 2006. Same-store sales increased 0.1% for the third quarter.

Net income for the third quarter was $8.4 million, or 37 cents  per diluted share, versus net income of $7.8 million, or 34 cents per diluted share, for the third quarter of fiscal 2006.

"Our third quarter performance exceeded the upper end of our earnings guidance and demonstrated the strength of our business model," said Steven Miller, the company's chairman, president and ceo. "While we continued to face a challenging consumer environment throughout the quarter, with particular headwinds in certain of our markets, our team did a tremendous job of overcoming these challenges and producing solid gains in the bottom line. Our same-store sales comped positively and we meaningfully increased product margins during the quarter, while realizing significant distribution center savings from improved operating efficiencies."

For the 39-week period ended Sept. 30, net sales increased $23.9 million, or 3.7%, to $666.2 million from net sales of $642.3 million in the same period last year. Same-store sales increased 0.2% in the first 39 weeks of fiscal 2007 versus the same period last year. Net income was $21.9 million, or 97 cents per diluted share, for the first 39 weeks of fiscal 2007, compared to net income of $21.2 million, or 93 cents per diluted share, in the same period last year.

Big 5 said that it anticipates same-store sales growth for the fourth quarter to be in the low single-digit negative to low single-digit positive range and earnings per diluted share in the range of 36 cents to 46 cents. For the fiscal 2007 full year, the company expects 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 $1.33 to $1.43.