Big 5 Sporting Goods Reports $17.3 Million Net Loss in Q1 Fiscal 2025

Big 5 Sporting Goods Corporation reported a net loss of $17.3 million for the first quarter of fiscal 2025, translating to a loss of $0.78 per share, compared to a net loss of $8.3 million, or $0.38 per share, in the same period last year. The company's net sales decreased by 9.2% to $175.6 million from $193.4 million, primarily driven by a 7.8% decline in same-store sales. The decrease in sales was attributed to inflationary pressures affecting consumer sentiment, unfavorable weather impacting winter-related product sales, and a reduced store count, with 414 stores operational as of March 30, 2025, down from 424 a year earlier.

Gross profit for the quarter was $54.3 million, representing 30.9% of net sales, slightly down from 31.2% in the prior year. The decline in gross profit margin was due to lower merchandise margins and higher store occupancy expenses as a percentage of sales, although these were partially offset by reduced distribution expenses. Selling and administrative expenses decreased to $70.8 million, or 40.3% of net sales, from $71.4 million, reflecting lower labor costs and credit card fees associated with decreased sales.

Operationally, Big 5 closed eight stores in the first quarter of fiscal 2025, with plans to close approximately 15 stores throughout the fiscal year. The company did not anticipate opening any new stores during this period. The total cash on hand as of March 30, 2025, was $3.9 million, a decrease from $12.6 million a year prior. The company also reported $30.9 million in borrowings under its revolving credit facility, compared to no borrowings in the same quarter last year.

Looking ahead, Big 5 is closely monitoring macroeconomic trends, including inflation and potential changes in tariffs, which could impact product costs and consumer demand. The company is evaluating its strategies in response to these challenges, particularly as it navigates a competitive retail environment. Despite the current challenges, management believes it can fund its cash requirements through existing cash, operating cash flows, and credit facility borrowings for at least the next 12 months.