Big 5 Sporting Goods releases results of COVID-19 affected Q2
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Big 5 Sporting Goods, the US retail chain that includes fishing tackle among its wide offering, has released upbeat preliminary results for its second quarter, ended June 28.
Same-store sales for the first half of the quarter, when COVID-19 forced a high number of store closures, dropped by 28.2% year-on-year.
However, when stores reopened in the second half of the quarter, same-store sales increased by 15.5% year-on-year, with very strong merchandising margins.
For the quarter, same-store sales decreased 4.2% year-on-year. Total net sales for the period were $228 million, compared to $241 million the previous year.
“We are pleased with an exceptionally strong second-quarter performance driven by substantial sales and merchandise margin gains….and by meaningful reductions in our cost structure,” said Chairman and CEO, Steven G. Miller.
“This powerful combination has contributed to significantly reduced inventory and net borrowing levels. Our business is in a very strong financial position.”
Cost reductions came chiefly from payroll, advertising and rent abatement
“We are also pleased that the positive sales and margin momentum has continued into the start of the third quarter,” said Miller.
Big 5 is recognising the efforts of its team with special bonuses, with the exception of senior executives. It will also implement previously planned pay increases that had been suspended due to uncertainties surrounding COVID-19.
The company temporarily closed one half of its retail stores in response to the COVID-19 outbreak. A quarter remained closed at the end of April, but all closures had reopened in some capacity by the end of May. By the end of the quarter all stores had reopened for instore shopping.
Four stores closed due to damage incurred in connection with civil unrest have also reopened. The company currently has 431 stores, three less than at the same time last year.