Big 5 Sporting Goods Corporation reported a significant decline in financial performance for the second quarter of fiscal 2025, ending June 29, 2025. The company recorded net sales of $184.9 million, a decrease of 7.5% from $199.8 million in the same quarter of the previous year. This decline was attributed to a 6.1% drop in same-store sales, which the company linked to inflationary pressures that dampened consumer sentiment and reduced demand for discretionary products. The net loss for the quarter was $24.5 million, or $1.11 per share, compared to a net loss of $10.0 million, or $0.46 per share, in the prior year.
In the first half of fiscal 2025, Big 5's net sales totaled $360.5 million, down 8.3% from $393.3 million in the same period of fiscal 2024. The company experienced a similar trend in same-store sales, which fell by 6.9%. The gross profit margin also decreased, with gross profit at $106.5 million, or 29.5% of net sales, compared to $119.1 million, or 30.3% of net sales, in the previous year. The increase in selling and administrative expenses to $146.1 million, or 40.5% of net sales, was primarily due to higher legal and third-party expenses related to a proposed merger and a non-cash impairment charge for underperforming stores.
Operationally, Big 5 closed eight stores in the first half of fiscal 2025, with plans to close approximately 15 stores by the end of the fiscal year. The company operated 414 stores as of June 29, 2025, down from 425 stores a year earlier. The company’s cash position remained stable at $4.9 million, with long-term revolving credit borrowings increasing to $71.4 million from zero in the previous year. The increase in borrowings was primarily due to the need for liquidity amid declining sales.
On June 29, 2025, Big 5 announced a proposed merger with Worldwide Sports Group Holdings LLC, which is expected to close in the second half of 2025, subject to stockholder approval. Under the terms of the merger, shareholders will receive $1.45 per share in cash. The company is currently evaluating the impact of macroeconomic factors, including inflation and tariffs, on its operations and financial results. The management expressed concerns that if they cannot pass increased product costs onto consumers, it could further affect merchandise margins and profitability.
Looking ahead, Big 5 anticipates continued challenges in the retail environment, particularly due to inflation and changing consumer behavior. The company plans to focus on managing its costs and optimizing its store footprint while navigating the complexities of the proposed merger. The outlook remains cautious as the company adapts to the evolving market conditions and seeks to stabilize its financial performance.
About BIG 5 SPORTING GOODS Corp
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