Big 5 Sporting Goods Corporation Announces Fiscal 2024 Fourth Quarter and Full Year Results

Core Viewpoint - Big 5 Sporting Goods Corporation reported a significant decline in net sales and increased net losses for both the fourth quarter and full year of fiscal 2024, reflecting ongoing challenges in the retail environment and macroeconomic pressures on discretionary spending [1][6]. Financial Performance - For the fourth quarter of fiscal 2024, net sales were $181.6 million, down from $196.3 million in the same quarter of fiscal 2023, representing a decrease of 6.1% in same store sales [2][6]. - Gross profit for the fourth quarter was $51.2 million, compared to $59.2 million in the prior year, with a gross profit margin of 28.2%, down from 30.2% year-over-year [3]. - The overall selling and administrative expense decreased by $1.0 million, but as a percentage of net sales, it increased to 39.3% from 36.9% due to lower sales [4]. - The net loss for the fourth quarter was $20.9 million, or $0.95 per basic share, compared to a net loss of $8.9 million, or $0.41 per basic share in the fourth quarter of fiscal 2023 [5]. - For the full year of fiscal 2024, net sales totaled $795.5 million, down from $884.7 million in fiscal 2023, with a full-year net loss of $69.1 million, or $3.15 per basic share [6]. Adjusted EBITDA - Adjusted EBITDA for the fourth quarter was a negative $16.4 million, compared to a negative $8.7 million in the prior year, while for the full year, it was a negative $36.7 million, down from a positive $7.3 million in fiscal 2023 [7]. Operational Insights - The company experienced challenging sales trends in the first quarter of fiscal 2025, attributed to macroeconomic headwinds and unfavorable weather patterns [8]. - As of December 2024, the company had $13.8 million in borrowings under its credit facility and a cash balance of $5.4 million, with merchandise inventories decreasing by 5.6% compared to the prior year [9]. Future Guidance - For the first quarter of fiscal 2025, the company expects same store sales to decline in the mid to high single-digit range compared to the first quarter of fiscal 2024, with anticipated net loss per basic share in the range of $0.75 to $0.85 [10][11]. - The company plans to close approximately seven additional stores during fiscal 2025, following eight closures in the first quarter [12].