Big Five Sporting Goods sees sales dip in third quarter
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Big 5 Sporting Goods, a major supplier of fishing tackle across North America, saw its third quarter net sales down from the same period last year.
The group reported sales of $266.4m (2017: $270.5m) and a same store sales decrease of 2%. Gross profit came in at $82.5m ($87.5m). For the 39-week period ended September 30, net sales were $740.5m ($766.7m). Same store sales dropped 3.9% during the same period, compared to an increase of 1.7% in the last comparable period.
“Our results for the third quarter reflect positive, same store sales in July, offset by a lower than expected performance in August and September,” said Steven G. Miller, the company’s Chairman, President and CEO. “While we are disappointed by our sales performance, we are pleased with our ability to diligently manage our product margins and expenses and generate earnings per share within our guidance range.
“Despite softness in sales, we continue to make progress right-sizing our inventory and believe it is well positioned for the fourth quarter.”
Miller added that the company is focused on improving its product assortment and marketing strategy to succeed in the ‘evolving’ retail environment. “While consumer spending over the holiday season and winter weather conditions in our markets are difficult to predict, we are cautiously optimistic that our results for the fourth quarter will benefit from a number of initiatives to drive traffic and sales.”
During the third quarter, Big 5 Sporting Goods opened one new store. For the full year, it expects to open four and close two.