Big 5 Sporting Goods Corporation

First-quarter net sales were $175.6 million, down from $193.4 million a year ago, and same-store sales declined 7.8%. Gross profit was $54.3 million versus $60.4 million last year, and gross margin was 30.9% compared with 31.2%. Net loss was $17.3 million, or $0.78 per basic share, versus a net loss of $8.3 million, or $0.38 per basic share in the prior-year quarter. EBITDA was negative $12 million versus negative $6.5 million last year. Inventory increased 6.5% year over year, cash used in operating activities was $15.3 million, and the company ended the quarter with $30.9 million of borrowings and $3.9 million of cash. For the second quarter, management expects same-store sales to be down in the low to mid-single-digit range and net loss per basic share of $0.75 to $0.90; full-year CapEx is expected to be $4 million to $7 million.

Steve Miller said the quarter was broadly in line with expectations despite macroeconomic and weather-related headwinds. He emphasized that January and February were especially weak because winter weather comparisons were unfavorable, but March improved to flat same-store sales as weather normalized late in the season. Miller also highlighted that inventory was brought in early to prepare for summer demand and to limit near-term tariff exposure, while noting the company will stay nimble on purchasing as tariffs and consumer conditions evolve.

Barry Emerson detailed that gross profit was $54.3 million, down from $60.4 million, and gross margin slipped to 30.9% from 31.2% due mainly to higher store occupancy expense and a 78-basis-point drop in merchandise margin. Selling and administrative expense fell $0.6 million, but rose to 40.3% of sales from 36.9% because sales were lower. He also noted net cash used in operating activities of $15.3 million, $1.7 million of first-quarter CapEx, and quarter-end borrowings of $30.9 million under the $150 million credit facility with $3.9 million in cash. Full-year CapEx is expected to be $4 million to $7 million.

There was no real analyst Q&A portion in the transcript, so the main forward-looking discussion came from management’s prepared remarks. The key questions implied by the call were about weather, tariffs, and the pace of demand into summer, and management answered that inventory is positioned ahead of tariff costs and should support Memorial Day, Father’s Day, and summer sales. They also said second-quarter sales are currently down in the high single-digit range to date, with a roughly 400-basis-point drag from the Easter calendar shift.