Big 5 Sporting Goods (BGFV) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 2025 were $175.6M, down 9.2% from $193.4M year-over-year, with same-store sales declining 7.8% due to unfavorable weather, inflation, and macroeconomic headwinds.

• Net loss widened to $17.3M ($0.78 per share) from $8.3M ($0.38 per share) in the prior year, driven by reduced sales, lower margins, and a reduced tax benefit.

• EBITDA was negative $12.0M, compared to negative $6.5M in Q1 2024.

• Inventory increased 6.5% year-over-year due to earlier seasonal merchandise receipts, positioning for summer sales and mitigating tariff impacts.

• Eight stores closed in Q1, with seven more closures expected in the remainder of the year; no new store openings planned for 2025.

Financial highlights

• Gross profit for Q1 was $54.3M (30.9% margin), down from $60.4M (31.2%) last year.

• Operating loss increased to $16.4M from $11.0M in Q1 2024.

• Net cash used in operating activities was $15.3M, versus $8.2M provided last year.

• Cash at period end was $3.9M, with $30.9M in borrowings under a $150M credit facility.

Outlook and guidance

• Q2 2025 same-store sales expected to decline in the low to mid-single-digit range year-over-year, reflecting ongoing macroeconomic headwinds and calendar shifts.

• Q2 net loss per share expected between $0.75 and $0.90, with no tax benefit, compared to $0.46 loss per share last year (which included a $0.16 tax benefit).

• CapEx for 2025 expected to be $4–$7M, focused on store remodeling, distribution, and IT.

• Management expects to fund cash requirements from cash on hand, operations, and credit facility for at least the next 12 months.