Big 5 Sporting Goods(US:BGFV)2025-04-30 01:34Financial Data and Key Metrics Changes - Net sales for Q1 2025 were $175.6 million, down from $193.4 million in the prior year, with same-store sales decreasing by 7.8% compared to Q1 2024 [6] - Gross profit for Q1 2025 was $54.3 million, compared to $60.4 million in the same quarter last year, resulting in a gross profit margin of 30.9%, down from 31.2% [13] - The net loss for Q1 2025 was $17.3 million, or $0.78 per basic share, compared to a net loss of $8.3 million, or $0.38 per basic share in Q1 2024 [14] - EBITDA for Q1 2025 was negative $12 million, compared to negative EBITDA of $6.5 million in the prior year [15] Business Line Data and Key Metrics Changes - On a same-store basis, hard goods decreased by 4.7%, apparel declined by 8.7%, and footwear was down by 11.8% [7] - Transactions for the period were down 5.3%, and the average sale decreased by 2.5% [8] Market Data and Key Metrics Changes - Sales in January and February were particularly challenging due to unfavorable seasonal weather, resulting in winter-related sales down nearly 25% [6] - March same-store sales were flat compared to the prior year, benefiting from an approximate 300 basis point impact from the Easter calendar shift [7] Company Strategy and Development Direction - The company continues to optimize its store portfolio, closing eight stores in Q1 2025 and anticipating the closure of approximately seven additional stores throughout the year [10] - The company is focused on capitalizing on sales opportunities during high-volume periods such as Memorial Day and Father's Day, with healthy inventory levels prepared in advance of tariff impacts [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the fluidity of macroeconomic conditions and the uncertainty in the overall environment, emphasizing the need to monitor tariffs and their impact on the supply chain and consumer spending [12] - For Q2 2025, the company expects same-store sales to be down in the low to mid-single-digit range, reflecting ongoing macroeconomic headwinds [17] Other Important Information - Merchandise inventory at the end of Q1 2025 increased by 6.5% year over year, primarily due to earlier scheduling of spring and summer merchandise deliveries [15] - Capital expenditures for Q1 2025 totaled $1.7 million, with expectations for full-year CapEx in the range of $4 million to $7 million [16] Q&A Session Summary Question: What are the expectations for same-store sales in Q2 2025? - Management expects same-store sales to be down in the low to mid-single-digit range compared to Q2 2024, influenced by macroeconomic headwinds and calendar shifts [17] Question: How is the company managing inventory levels? - The company believes its inventory is well positioned to drive sales during the upcoming summer season, having received products in advance of tariff impacts [15]