Yahoo Finance Big 5 Sporting Goods Corporation (NASDAQ:BGFV) Q1 2024 Earnings Call Transcript
Big 5 Sporting Goods Corporation (NASDAQ:BGFV) Q1 2024 Earnings Call Transcript April 30, 2024
Big 5 Sporting Goods Corporation isn't one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Operator: Good day, ladies and gentlemen. Welcome to the Big 5 Sporting Goods First Quarter 2024 Earnings Results Conference Call. Today's call is being recorded. With us today are Mr. Steve Miller, President and Chief Executive Officer; and Mr. Barry Emerson, Chief Final Officer of Big 5 Sporting Goods. At this time, for opening remarks and introductions, I would like to turn the conference over to Mr. Miller. Please go ahead, sir.
Steven Miller: Thank you, operator. Good afternoon, everyone. Welcome to our 2024 first quarter conference call. Today, we will review our financial results for the first quarter of fiscal 2024 as well as provide an outlook for the second quarter. I will now turn the call over to Barry to read our safe harbor statement.
Barry Emerson: Thanks, Steve. Except for statements of historical facts, any remarks that we may make about our future expectations, plans, and prospects constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results in current and future periods to differ materially from forecasted results. These risks and uncertainties include those more fully described in our annual reports on Form 10-K, our quarterly reports on Form 10-Q, and our other filings, with the Securities and Exchange Commission. We undertake no obligation to revise or update any forward-looking statements that may be made from time to time by us or on our behalf.
Steven Miller: Thank you, Barry. Our first quarter results were consistent with our guidance and continue to reflect a challenging macroeconomic environment that pressuring consumer discretionary spending. Our results were also impacted by extreme weather volatility across many of our markets that was generally unfavorable to our business over the course of the quarter. Net sales for the first quarter were $193.4 million compared to $224.9 million in the prior year with same-store sales down 13.5%. As anticipated, sales comparisons were impacted by the calendar shift of the Easter holiday when our stores are closed from the second quarter of 2023 to the first quarter of 2024. We believe this calendar shift negatively impacted our first quarter same-store sales by roughly 100 basis points.
From a category perspective, apparel was down approximately 16%, hard goods was down approximately 14% and footwear was down approximately 10%. While we were encouraged that our average ticket was up slightly year-over-year, our transaction count was down low-double-digits, which we believe reflects the soft discretionary spending environment. In the face of the top-line sales headwinds, we have continued to focus on the aspects of the business that we have more control over. We were relatively pleased with the results we achieved from our efforts in optimizing merchandise margins, maintaining healthy inventory levels relative to sales, and managing expenses. For the first quarter, we grew our merchandise margins by nearly 50 basis points versus the prior year.
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