- **Q1 Results Under Pressure**: $175.6M net sales (-8.2% YoY), driven by 25% winter sales decline vs prior year. March recovery limited overall damage.
- **Inventory Strategy Paying Off**: +6.5% YoY inventory to hedge tariffs, positioning for strong summer sell-through.
- **Q2 Challenges Ahead**: Same-store sales expected down low-mid single digits, net loss widening to $0.75-$0.90 per share.
- **Cost Management Key**: 400bps expense rate increase vs prior year, but strict control on controllable costs.


**【CEO Summary Section】**
- **Q1 2025 Financial Highlights**: Net sales of $175.6M (-8.2% YoY), same-store sales down 7.8% due to unfavorable winter weather. March sales improved to flat YoY, offsetting earlier double-digit declines.
- **Category Performance**: Hard goods (-4.7%), apparel (-8.7%), footwear (-11.8%) all declined, with apparel/footwear most impacted by weather. Average transaction down 5.3%, average sale down 2.5%.
- **Inventory Management**: +6.5% YoY inventory to mitigate tariff risks, well-positioned for summer selling. Expect inventory normalization by year-end.
- **Strategic Initiatives**: Closed 8 stores Q1, plan to close 7 more. Focused on high-volume summer periods (Memorial Day, Father's Day) for Q2 recovery.
- **Tariff Update**: Mitigated near-term impacts via early merchandise receipts; monitoring long-term supply chain risks.

**【CFO Financial Commentary】**
- **Profitability**: Gross margin 30.9% (-30bps YoY), driven by store occupancy costs and promotional activity. Net loss $17.3M (-110% YoY), EBITDA (-$12M vs -$6.5M YoY).
- **Expense Control**: Selling/admin expenses down $0.6M YoY, but +400bps as % of sales due to lower sales base.
- **Balance Sheet**: $30.9M debt outstanding, $3.9M cash. CapEx $1.7M Q1, full-year guidance $4-7M for store remodels.
- **Q2 Outlook**: Same-store sales down low-mid single digits, net loss per share $0.75-$0.90. Calendar shifts (Easter, 4th of July) weigh on results.


Big 5 Sporting Goods (BGFV)-29 Apr 25-2025 Q1 Earnings call transcript

- **Q4 2024 Results**: Net sales down 7.6% YoY to $181.6M, driven by macroeconomic weakness and poor winter weather in Southern markets.
- **Category Performance**: Hard goods (-8.7%) and footwear (-5.4%) lagged, while apparel (-1.3%) showed relative resilience.
- **Strategic Actions**: 15 store closures in FY2025 to improve efficiency, 5.6% YoY inventory reduction to align with demand.
- **Q1 2025 Outlook**: Same-store sales expected to decline mid to high single digits, with weak winter business persisting.
- **Financial Challenges**: Gross margin compression (28.2% vs. 30.2% YoY), net loss widening to $20.9M, and negative adjusted EBITDA of -$16.4M.
- **Liquidity**: $5.4M cash, $13.8M debt under $150M credit facility, providing financial flexibility for the challenging environment.

**【CEO Opening Remarks】**
- Q4 2024 net sales: $181.6M (-7.6% YoY), same-store sales down 6.1% due to macroeconomic headwinds and unfavorable winter weather in Southern markets.
- Key categories: Apparel (-1.3%), Footwear (-5.4%), Hard Goods (-8.7%). Average sale down 2.3%, transactions down 3.8%.
- Inventory optimization: Year-over-year decline of 5.6%, enabling better inventory deployment.
- Strategic store closures: 15 locations in FY2025 (8 already closed) to focus on high-performing stores.
- Q1 2025 outlook: Same-store sales expected to decline mid to high single digits, driven by continued macroeconomic challenges and weak winter sales.

**【CFO Financial Details】**
- Gross profit: $51.2M (-13.5% YoY), margin 28.2% (-200bps YoY) due to higher occupancy costs and lower merchandise margins.
- Operating expenses: $71.4M (+3.9% YoY as % of sales), reflecting cost management despite lower sales.
- Net loss: $20.9M (-144% YoY) driven by higher expenses and valuation allowance on deferred taxes.
- Adjusted EBITDA: -$16.4M (vs. -$8.7M YoY), reflecting ongoing profitability challenges.
- Balance sheet: Inventory down 5.6% YoY, cash balance $5.4M, $13.8M debt under amended $150M credit facility.
- FY2025 CapEx: $4-8M for store remodels.

**【Strategic Initiatives】**
- Inventory management: Aligning stock with demand to capitalize on value-oriented buying opportunities.
- Store portfolio optimization: Reallocation of resources to top-performing locations, reducing network costs.
- Seasonal transition: Well-positioned for spring sports (baseball) with enhanced product assortments.
- Cost control: Focused on gross profit dollars, expenses, and inventory levels to maintain flexibility.

**【Q&A Highlights】**
- No specific questions asked during the call; management concluded with remarks on navigating the current environment and maintaining focus on controllable factors.


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