Big 5 Sporting Goods (BGFV) Q2 2024 earnings summary

Executive summary

• Q2 2024 results aligned with guidance, with net sales down 10.6% to $199.8M and same-store sales declining 9.9% year-over-year amid persistent inflation and weak discretionary demand.

• Gross profit margin fell to 29.4% from 32.2% in Q2 2023, driven by lower merchandise margins and higher expenses.

• Net loss widened to $10.0M ($0.46 per share) in Q2 2024 from $0.3M ($0.01 per share) in Q2 2023.

• Inventory was reduced by 10.8% year-over-year to align with lower sales trends.

• Dividend was suspended to maintain financial flexibility amid macroeconomic uncertainty.

Financial highlights

• Q2 2024 net sales: $199.8M (down from $223.6M in Q2 2023); H1 2024 net sales: $393.3M (down from $448.5M in H1 2023).

• Q2 2024 gross profit: $58.7M (29.4% margin); H1 2024 gross profit: $119.1M (30.3% margin).

• Q2 2024 net loss: $10.0M; H1 2024 net loss: $18.3M.

• EBITDA was negative $8.7M for Q2 2024, compared to positive $4.2M in Q2 2023.

• Cash at June 30, 2024: $4.9M; no borrowings under credit facility.

Outlook and guidance

• Q3 2024 same-store sales expected to decline in the mid-single-digit range year-over-year.

• Q3 2024 net loss per share projected between $0.15 and $0.35, compared to Q3 2023 net income per share of $0.08.

• Three new store openings and eleven closures anticipated for fiscal 2024.

• Capital expenditures for 2024 expected to range from $9M to $14M, focused on store remodeling, new stores, and distribution center investments.

• Ongoing macroeconomic headwinds anticipated to continue impacting consumer spending.