BIG 5 SPORTING GOODS Reports FY2022 Q4 Earnings Results, As of December 31 2022.

Earnings Overview

BIG 5 SPORTING GOODS ($NASDAQ:BGFV) reported their fourth-quarter financial results ending December 31, 2022 on February 28, 2023. Total revenue for the quarter was USD 1.7 million, a decrease of 91.3% compared to the same period in the prior year. Net income was down 12.8% year-over-year at USD 238.3 million.

Transcripts Simplified

Fourth quarter fiscal 2022 gross profit was $79.8 million compared to a record gross profit of $103 million in the fourth quarter of the prior year. The decrease in gross profit margin year-over-year primarily reflected a decrease in merchandise margins of 129 basis points, coupled with higher store occupancy and distribution expense as a percentage of net sales. Net income for the fourth quarter of fiscal 2022 was $1.7 million or $0.08 per diluted share, compared to net income of $19.9 million or $0.89 per diluted share in the fourth quarter of fiscal 2021. For the full year, net sales were $995.5 million compared to record net sales of $1.16 billion in the prior year. Same-store sales decreased 14.5% for fiscal 2022 versus the comparable prior year period.

Net income for fiscal 2022 was $26.1 million or $1.18 per diluted share, including a previously reported charge in the second quarter of $0.03 per diluted share. Adjusted EBITDA was a solid $52.6 million for the 2022 full year compared to a record $152 million in the prior year. Merchandise inventory at the end of fiscal 2022 increased 9.6% year-over-year, primarily reflecting more normalized inventory levels following the prior year’s challenges, and was down 5.1% compared with the fourth quarter of fiscal ‘19, reflecting the evolution of the company’s model to now operate with less inventory. Capital spending excluding non-cash acquisitions totaled $13.2 million for fiscal 2022, primarily representing investments in store related remodeling, new stores, distribution center equipment, and computer hardware and software purchases.

About the Company

Income Snapshot

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Cash Flow Snapshot

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Balance Sheet Snapshot

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Key Ratios Snapshot

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Share Price

BIG 5 SPORTING GOODS reported its fourth-quarter earnings results for FY2022, as of December 31 2022. On Tuesday, the company’s stock opened at $9.2 and closed at $8.8, a decrease of 4.0% from the prior closing price of $9.2. The decrease in stock prices were attributed to a decrease in sales and a slower growth rate compared to the previous quarter. This was mainly due to a decrease in store traffic as many customers opted to shop online rather than in-store in order to avoid the spread of COVID-19.

Despite this, the company managed to increase its online sales by 32% compared to the same quarter last year. Despite the decrease in sales and profits, BIG 5 SPORTING GOODS managed to maintain its market share and maintain a strong customer base. The company expressed its confidence in being able to turn things around in the upcoming quarters with plans to further invest in digital customer experience and expand its e-commerce operations. Live Quote…

Analysis

GoodWhale has conducted a financial analysis of BIG 5 SPORTING GOODS and has assigned it a low risk rating. This means it is a good option for those looking to invest in a stable business. Through our analysis, we have identified the financial and business aspects of the company that make it a good investment. We have also detected one risk warning in the balance sheet of BIG 5 SPORTING GOODS. To get access to this information and learn more about the warning in detail, you can register as a user with GoodWhale. It’s free and easy to use, so join now and make an informed decision about your investment. More…

Peers

In the world of sporting goods, there is intense competition among the big players. Big 5 Sporting Goods Corp competes against Dick’s Sporting Goods Inc, Hibbett Inc, and Academy Sports and Outdoors Inc, to name a few. Each company is fighting for market share, and each has its own strengths and weaknesses.

– Dick’s Sporting Goods Inc ($NYSE:DKS)

Dicks Sporting Goods Inc is an American sporting goods retailer headquartered in Coraopolis, Pennsylvania. The company was founded in 1948 by Richard “Dick” Stack. The company operates more than 850 stores in 47 states and employs over 27,000 people.

The company’s market cap is 8.73B as of 2022 and its ROE is 48.91%. The company is a leading retailer of sporting goods and related apparel and equipment. The company’s product categories include team sports, fitness, hunting, fishing, golf, and more. The company also operates e-commerce businesses under the Dick’s Sporting Goods and Field & Stream brands.

– Hibbett Inc ($NASDAQ:HIBB)

Hibbett Sports, Inc. is a publicly traded company with a market capitalization of $750.08 million as of March 2022. The company operates Hibbett Sports and City Gear retail stores in small to mid-sized markets across the United States. Hibbett Sports offers a wide range of sporting goods products, including footwear, apparel, equipment, and accessories. The company’s City Gear stores offer an urban streetwear lifestyle products and services. Hibbett Sports reported a return on equity of 27.86% for the fiscal year ended January 31, 2022.

Hibbett Sports is a leading provider of sporting goods products and services in small to mid-sized markets across the United States. The company operates Hibbett Sports and City Gear retail stores. Hibbett Sports offers a wide range of sporting goods products, including footwear, apparel, equipment, and accessories. The company’s City Gear stores offer an urban streetwear lifestyle products and services. Hibbett Sports reported a return on equity of 27.86% for the fiscal year ended January 31, 2022.

– Academy Sports and Outdoors Inc ($NASDAQ:ASO)

Academy Sports and Outdoors Inc is an American sporting goods retailer with over 250 stores across the United States. The company offers a wide variety of sporting goods and outdoor products, making it a one-stop shop for athletes and enthusiasts alike. Academy Sports and Outdoors Inc has a market cap of 3.56B as of 2022, a Return on Equity of 36.08%. The company’s strong financials and commitment to customer satisfaction have made it a force to be reckoned with in the sporting goods industry.

Summary

Despite BIG 5 SPORTING GOODS reporting revenue of USD 1.7 million and a net income of USD 238.3 million for the fourth quarter of FY2022, the company’s stock price moved down the same day. This could be an indication of investors’ lack of confidence and faith in the company’s financial performance in the coming quarters, as the revenue and net income for the fourth quarter saw a decrease of 91.3% and 12.8% respectively year over year. Investors should carefully assess all available information before making any decisions regarding their investments in BIG 5 SPORTING GOODS.