Big 5 Sporting Goods(BGFV) - 2026 Q1 - Quarterly Report

Financial Performance - For the thirteen weeks ended March 30, 2025, net sales were $175.6 million, a decrease of 9.2% compared to $193.4 million for the same period in 2024[10]. - Gross profit for the same period was $54.3 million, resulting in a gross margin of 30.9%, down from $60.4 million and a gross margin of 31.2% in the prior year[10]. - The company reported an operating loss of $16.4 million for the thirteen weeks ended March 30, 2025, compared to an operating loss of $11.0 million in the same period last year[10]. - Net loss for the period was $17.3 million, or $0.78 per share, compared to a net loss of $8.3 million, or $0.38 per share, in the prior year[10]. - The Company reported a net loss of $17.250 million for the 13 weeks ended March 30, 2025, compared to a net loss of $8.286 million for the same period in 2024, reflecting an increase in losses of approximately 108%[86]. - Basic loss per share for the 13 weeks ended March 30, 2025, was $(0.78), compared to $(0.38) for the same period in 2024, indicating a deterioration in earnings per share[86]. Sales and Revenue - For the 13 weeks ended March 30, 2025, net sales were $175.6 million, a decrease of 9.2% compared to $193.4 million for the same period in 2024[31]. - Hardgoods sales were $82.6 million, down 6.5% from $87.8 million in the prior year[31]. - Athletic and sport apparel sales decreased to $46.4 million from $51.5 million, a decline of 9.8%[31]. - Athletic and sport footwear sales fell to $45.8 million, down 13.1% from $52.6 million[31]. - The Company recognized $1.5 million in stored-value card redemption revenue for the 13 weeks ended March 30, 2025, compared to $1.4 million for the same period in 2024[32]. Assets and Liabilities - Total assets increased to $628.3 million as of March 30, 2025, from $609.4 million as of December 29, 2024[8]. - Current liabilities rose to $228.3 million, up from $202.6 million in the previous quarter, primarily due to an increase in accounts payable[8]. - Total current assets increased to $315.139 million as of March 30, 2025, compared to $286.169 million as of December 29, 2024, primarily driven by higher merchandise inventories[10]. - Total liabilities rose to $469.370 million as of March 30, 2025, up from $433.755 million as of December 29, 2024, reflecting increased accounts payable and long-term debt[10]. - The company experienced a significant increase in accounts payable, which rose to $98.229 million as of March 30, 2025, compared to $69.728 million as of December 29, 2024[10]. Operating Expenses - Employee labor and benefit-related expenses were $57,054,000 in fiscal 2025, slightly down from $58,274,000 in fiscal 2024[60]. - Total lease expense for the first quarter of fiscal 2025 was $27,138,000, compared to $27,091,000 in fiscal 2024, indicating a marginal increase[67]. - Operating lease expense for the first quarter of fiscal 2025 was $20,620,000, down from $21,039,000 in the prior year[67]. - Variable lease expense increased to $5,081,000 from $4,682,000 year-over-year[67]. Financing and Debt - The Company had long-term revolving credit borrowings of $30,882,000 as of March 30, 2025, compared to $13,756,000 as of December 29, 2024, indicating an increase of approximately 124%[80]. - The average interest rate on borrowings was 6.7% as of March 30, 2025, down from 7.6% as of December 29, 2024[80]. - The Loan Agreement with Bank of America has a maturity date of December 18, 2029, with a committed availability of up to $150 million, which can be increased to a maximum of $200 million[70]. - The Company had outstanding letter of credit commitments of $5.7 million as of March 30, 2025, compared to $6.1 million as of December 29, 2024[80]. Share-Based Compensation - The company recognized $0.7 million in share-based compensation expense for each of the 13-week periods ended March 30, 2025, and March 31, 2024[91]. - The Company granted 315,000 share option awards in the first quarter of fiscal 2025, with a weighted-average grant-date fair value of $0.91 per share option award[92]. - The total fair value of nonvested share awards that vested during the first quarter of fiscal 2025 was $0.2 million, compared to $0.8 million in fiscal 2024[98]. - As of March 30, 2025, there was $2.6 million of total unrecognized compensation expense related to nonvested share awards, expected to be recognized over a weighted-average period of 2.7 years[101]. Inventory and Merchandise - The Company recorded an estimated right-of-return merchandise cost of $0.5 million related to estimated sales returns as of March 30, 2025[35]. - Management regularly reviews inventories and records valuation reserves for damaged and defective merchandise, with no significant occurrences of obsolescence historically[38]. Operational Overview - The company operated 414 stores as of March 30, 2025, maintaining its presence in the western United States[14]. - The Company operates solely as a sporting goods retailer, with both retail stores and an e-commerce platform, and is evaluated as one reportable segment[29]. - The Company is subject to tariffs on imports, particularly from China, which could impact merchandise margins and operating results[25].