Retailer Big 5 Sporting Goods
For example, sales for the full year grew to $876.8 million, a 7.7% increase. That's not as great as could have been hoped for. The fourth quarter, after all, saw just a 7% increase, even though it included the important Christmas season. But after stumbling badly in 2005, Big 5 seems to have found its stride again.
Same-store sales, which track sales at stores open for at least a year and are considered an important retail-industry metric for measuring company performance, have also recorded steady improvement all year long. The fourth quarter also marked the company's 44th consecutive quarter of positive comps growth, a not-too-shabby milestone.
Same-Store Sales Growth
Sales still lag where they were two years ago, when Big 5 notched nearly $1.35 billion in sales, but they show healthy improvement. Despite the unseasonably warm winter weather that has affected some retailers, such as Quiksilver
That seems to make Big 5's achievement all that more notable. It was able to move all three major segments of items it sells: shoes, hard goods, and apparel. Part of that has to do with location. Big 5 has 344 stores in 10 western states, and those states had more favorable winter-weather patterns than the rest of the country. Retailers such as Quiksilver and K2 have a more national and international presence and were affected by warmer weather in the east as well as particularly unseasonably warm weather in Europe.
Net income grew 25% over the year-ago period, to come in at $9.6 million, or $0.42 per share. A nearly $2 million reduction in distribution-center costs helped that improvement. Big 5's new facility had been a drag on performance earlier in the year, but the company seems to have worked that out. However, its gains were partially offset by increases in inventory cost capitalization, which have plagued Big 5's performance all year.
Big 5's results seem to mirror those reported by Sports Chalet
For more box scores on sporting goods retailers, check out:
- K2 Not Taking a Powder
- Foolish Forecast: Quiksilver Stumbles on the Slopes
- Big Five's Gloomy Forecast
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