On February 25, 2025, Big 5 Sporting Goods Corp (BGFV, Financial) released its 8-K filing detailing the financial results for the fiscal 2024 fourth quarter and full year ended December 29, 2024. Big 5 Sporting Goods Corp, a specialty retailer in the Western United States, focuses on selling a wide range of sporting goods, including athletic shoes, apparel, and equipment for various sports and outdoor activities.
Performance Overview
Big 5 Sporting Goods Corp reported net sales of $181.6 million for the fourth quarter of fiscal 2024, a decrease from $196.3 million in the same period of fiscal 2023. The company experienced a 6.1% decline in same-store sales during this quarter. Gross profit also fell to $51.2 million from $59.2 million in the previous year, with the gross profit margin decreasing to 28.2% from 30.2%. This decline was attributed to higher store occupancy and distribution expenses, as well as lower merchandise margins.
Financial Achievements and Challenges
Despite a decrease in overall selling and administrative expenses by $1.0 million, the company faced a net loss of $20.9 million, or $0.95 per basic share, for the fourth quarter. This compares to a net loss of $8.9 million, or $0.41 per basic share, in the same quarter of the previous year. The fiscal 2024 full year saw net sales of $795.5 million, down from $884.7 million in fiscal 2023, with a net loss of $69.1 million, or $3.15 per basic share, compared to a net loss of $7.1 million, or $0.33 per basic share, in fiscal 2023.
Key Financial Metrics
Adjusted EBITDA was negative $16.4 million for the fourth quarter of fiscal 2024, compared to negative $8.7 million in the prior year period. For the full year, Adjusted EBITDA was negative $36.7 million, a significant decline from a positive $7.3 million in fiscal 2023. The company ended the fiscal fourth quarter with $13.8 million in borrowings under its credit facility and a cash balance of $5.4 million. Merchandise inventories decreased by 5.6% compared to the prior year, reflecting efforts to manage inventory levels.
“Our fourth quarter performance was consistent with our previously announced expectations, delivering earnings in the middle of our guidance range, reflecting our ability to manage margins and expenses in the challenging sales environment,” commented Steven G. Miller, Chairman, President and CEO.
Balance Sheet and Future Outlook
Big 5 Sporting Goods Corp amended and extended its $150 million credit agreement with Bank of America, maturing in December 2029. The company currently operates 414 stores, having closed eight stores in the first quarter of 2025 as part of its store optimization strategy. Looking ahead, the company expects same-store sales to decline in the mid to high single-digit range for the first quarter of fiscal 2025, with a projected net loss per basic share between $0.75 and $0.85.
| Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Net Sales | $181.6M | $196.3M | $795.5M | $884.7M |
| Gross Profit | $51.2M | $59.2M | $234.5M | $285.8M |
| Net Loss | $(20.9)M | $(8.9)M | $(69.1)M | $(7.1)M |
| Adjusted EBITDA | $(16.4)M | $(8.7)M | $(36.7)M | $7.3M |
Big 5 Sporting Goods Corp continues to navigate a challenging retail environment, with macroeconomic pressures affecting discretionary spending. The company's focus remains on managing margins and operational execution as it adapts to changing market conditions.
Explore the complete 8-K earnings release (here) from Big 5 Sporting Goods Corp for further details.
