Yahoo Finance Big 5 Sporting Goods Corp (BGFV) Q1 2024 Earnings Call Transcript Highlights: Navigating ...
Release Date: April 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you provide an overview of Big 5 Sporting Goods' financial performance in the first quarter of 2024? A: (Barry Emerson, CFO) - In Q1 2024, Big 5 Sporting Goods reported net sales of $193.4 million, a decrease from $224.9 million in the previous year. Same-store sales were down 13.5%. The net loss for the quarter was $8.3 million, or $0.38 per basic share, compared to a net income of $0.2 million, or $0.01 per diluted share, in the first quarter of 2023.
Q: What were the main factors impacting the sales performance this quarter? A: (Steve Miller, CEO) - The sales performance was primarily affected by the challenging macroeconomic environment impacting consumer discretionary spending and extreme weather conditions. Additionally, the calendar shift of the Easter holiday negatively impacted our first-quarter same-store sales by approximately 100 basis points.
Q: How did merchandise categories perform in the first quarter? A: (Steve Miller, CEO) - In the first quarter, apparel sales were down approximately 16%, hard goods were down about 14%, and footwear decreased by roughly 10%. Despite these declines, we saw a slight increase in the average ticket size, although transaction counts were lower.
Q: What strategies are being implemented to manage the current challenges? A: (Steve Miller, CEO) - We are focusing on optimizing merchandise margins, maintaining healthy inventory levels, and managing expenses. Our merchandise margins grew by nearly 50 basis points from the previous year, and we reduced inventory levels by 12.5%. We also cut our first-quarter selling and administrative expenses by $3.8 million year over year.
Q: What is the outlook for the second quarter of 2024? A: (Barry Emerson, CFO) - For Q2 2024, we expect same-store sales to decrease in the high single-digit range. We anticipate a net loss per basic share in the range of $0.40 to $0.55, reflecting ongoing macroeconomic pressures on consumer spending.
Q: Can you discuss the company's inventory and cash flow status at the end of Q1 2024? A: (Barry Emerson, CFO) - At the end of the first quarter, our merchandise inventory was down 12.5% year over year, reflecting our efforts to manage inventory levels in a soft sales environment. Net cash provided by operating activities was $8.2 million, compared to $12.3 million in the same period last year. Our cash balance was $12.6 million, up from $9.2 million at the end of the fourth quarter of 2023.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
