Big 5 Sporting Goods(US:BGFV)2024-07-30 22:20Financial Data and Key Metrics Changes - Net sales for Q2 2024 were $199.8 million, down from $223.6 million in the prior year, with same-store sales decreasing by 9.9% [8][10] - Gross profit for Q2 2024 was $58.7 million compared to $71.9 million in Q2 2023, resulting in a gross profit margin of 29.4%, down from 32.2% [19] - Net loss for Q2 2024 was $10 million or $0.46 per share, compared to a net loss of $0.3 million or $0.01 per share in Q2 2023 [22] - EBITDA for Q2 2024 was negative $8.7 million, compared to positive $4.2 million in the same period last year [22] Business Line Data and Key Metrics Changes - Apparel sales were down approximately 8%, footwear down approximately 9%, and hardgoods down approximately 11% [10] - Average ticket prices decreased in low single-digits, while transaction counts fell in high single-digits, reflecting macroeconomic challenges [10] Market Data and Key Metrics Changes - Same-store sales for the first half of 2024 decreased by 11.7% compared to the same period last year [23] - Merchandise inventory at the end of Q2 2024 decreased by 10.8% year-over-year, indicating efforts to align inventory with sales trends [25] Company Strategy and Development Direction - The company is focused on managing expenses and optimizing store labor hours in response to inflationary pressures [20][21] - Plans to open approximately three new stores and close about 11 stores to optimize the store base, resulting in around 422 stores by year-end [26] Management Comments on Operating Environment and Future Outlook - Management noted ongoing macroeconomic challenges affecting consumer discretionary spending, with expectations for same-store sales to decline in the mid-single-digit range for Q3 2024 [14][29] - The decision to suspend the quarterly cash dividend was made to maintain financial flexibility during the challenging economic climate [17][28] Other Important Information - Capital expenditures for the first half of 2024 totaled $6.3 million, with full-year expectations in the range of $9 million to $14 million [25][26] - The company remains committed to maximizing shareholder value despite the current economic challenges [17] Q&A Session Summary Question: What are the expectations for same-store sales in the upcoming quarter? - Management expects same-store sales to decline in the mid-single-digit range due to ongoing macroeconomic headwinds [29] Question: How is the company managing its expenses in the current environment? - The company is optimizing store labor hours and managing expenses diligently to navigate cost inflation [20][21] Question: What is the rationale behind suspending the dividend? - The suspension of the dividend is aimed at providing added financial flexibility during the current challenging macroeconomic climate [17][28]