- Big 5 Sporting Goods ( NASDAQ: BGFV ) stock tumbled 15% postmarket Tuesday on the firm's weak Q2 results and grim Q3 outlook as shoppers cut down on spending amid high inflation.
- BGFV expects Q3 same store sales to decrease in the high-single-digit range vs. Q3 2021 as macroeconomic headwinds will likely continue impacting discretionary spending.
- Q3 EPS is expected to be $0.22-$0.32, much lower than $1.07 reported in Q3 2021.
- BGFV reported Q2 EPS of $0.41 vs. $1.63 in Q2 2021. This includes a $0.03 charge related to revaluation of workers' compensation reserves.
- Q2 revenue fell 22.2% Y/Y to $253.8M, while same store sales decreased 22.3%.
- Gross profit margin was 35% in Q2 vs. 38.9% in Q2 2021, primarily due to higher store occupancy and warehouse expense as a percentage of net sales.
- Merchandise inventories as of Q2-end increased 26.8% Y/Y, reflecting more normalized stock levels relative to sales and higher carryover of winter-related inventory.
- Shares of BGFV have declined 36% YTD.
- According to SA Quant rating system, BGFV is at high risk of cutting its dividend .
For further details see:
Big 5 Sporting Goods stock tumbles postmarket on weak results, grim outlook