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Big 5 Sporting Goods Posts 27% Profit Gain in Quarter

August 05, 2004|From Reuters

Retailer Big 5 Sporting Goods Corp. on Wednesday said second-quarter profit rose 27%, but results missed Wall Street's average forecast.

Net income jumped to $8 million, or 35 cents a share, for the period ended June 27, from $6.3 million, or 28 cents, a year earlier.

The most recent results excluded a charge associated with the early resumption of certain notes.

Analysts said they expected earnings of 36 cents a share.

Including the charge, Big 5 said net income was $7.5 million, or 33 cents a share.

Net sales increased to $184.5 million from $170.1 million, and sales at stores open at least a year -- a key measure of retail performance -- rose 3.9%.

The El Segundo-based company ended the quarter operating 295 stores, opening one new store. Big 5 said it anticipated unveiling 13 to 16 more stores by the end of fiscal 2004.

Looking ahead to the third quarter, Big 5 expects same-store sales to grow in the low-single-digit range, with earnings of 34 cents to 36 cents a share. Analysts, on average, expected earnings of 37 cents.

For fiscal 2004, the company expects same-store sales growth in the low- to mid-single-digit range and earnings from $1.55 to $1.61 a share, excluding the second-quarter charge for the debt extinguishment.

Fiscal 2004 will include 53 weeks for accounting purposes, with the extra week added to fourth-quarter results. The additional week should increase 2004 sales by 1.75% from fiscal 2003, but should not have a material effect on earnings, Big 5 said.

Shares of Big 5 rose 23 cents to $22.23 on Nasdaq.

The retailer has stores in 10 Western states, including 168 in California.

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