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Published
Aug 4, 2009
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Big 5 Sporting second quarter EPS tops view, sees strong third quarter profit

By
Reuters
Published
Aug 4, 2009

Aug 4 (Reuters) - Big 5 Sporting Goods Corp (BGFV.O) reported a better-than-expected quarterly profit on tighter cost control and forecast third-quarter profit above Wall Street expectations.


Columbia Omnishade sunglasses at Big 5 Sporting Goods - Photo: www.big5sportinggoods.com

For the third quarter, the company expects to earn 27 to 34 cents a share, while analysts on average were looking for a profit of 23 cents a share, according to Reuters Estimates.

Big 5 Sporting's profit has topped market expectations for the past three quarters, as the sporting goods retailer has kept a tight lid on costs by controlling personnel and advertising expenses to contend with a soft sales climate.

For the second quarter, net income rose to $4.7 million, or 22 cents a share, from $1.7 million or 8 cents a share, a year ago.

Net sales increased 3 percent to $216.0 million.

Analysts on average expected the company to earn 15 cents a share, before special items, on revenue of $216.1 million.

The company returned to marginally positive same-store sales in the quarter, driven by improving traffic. Big 5 Sporting had seen negative sales at stores open at least a year for the past six quarters.

The El Segundo, California-based company has 382 stores across 11 states in the western United States and sells athletic footwear and apparel, as well as outdoor and sporting equipment.

Shares of the company were trading up $1.02 at $15.07 after the bell. They closed at $14.05 Tuesday 4 August on Nasdaq.

(Reporting by Viraj Nair in Bangalore; Editing by Anne Pallivathuckal)

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