A large percentage of their stores are in California and California is going to raise the minimum wage to $15 an hour over the next 5 years. Labor costs are going to go up every year and Amazon keeps cutting into retailers by offering more and more goods. I just think retail is a bad sector.
Unfortunately, due to recent events, there has been a surge of fire arm purchases in the last two weeks. I think that the British vote only strokes those fears. Smith and Wesson had a little increase, too, on Friday, although SW has had a real bump in the last two weeks, while BGFV hasn't seen any increase until the last two days.
I wonder if BGFV has seen an increase in fire arm sales, and, if there is increased traffic, if it flowed over into other sales.
I think there was an upgrade or two that might have spurred on the stock.
For the most unfortunate reasons, we may see a bump or two between now and, including, the earnings announcement. I saw a report of a Georgia store that reported that, instead of selling 3 to 5 AK rifles a week (it might have been a day), that they were selling 10 to 15 AK rifles an hour. BGFV sells firearms. Maybe not in CA (as to AK's), but certainly elsewhere. I'm sorry to say that this horrific tragedy in Orlando will translate into sales and profits.
Big 5 has always focused on the lower end merchandise. Stores have a lot of merchandise crammed into them as well. I think it's difficult to try and sell gear costing $200 to $500 alongside alternate gear costing only $50 to $100. Near term is not good since Sports Authority is blowing out gear at 30% & more off as the stores close.
No article.Just reference to a tweet on twitter. I could not find again on Bloomberg but I think this is what they referenced: http://stocktwits.com/symbol/BGFV
I didn't see that article. Do you have a link?
I saw some site that had a heading in that line, but I wasn't willing to use my credit card to sign on for a free trial offer to see the full article.
I think they may have engaged similar advisors in the past. They have one hedge fund/investor that has been pushing them.
They need a couple of nice quarters. Worries me that they might be willing to sell right now while there has been weakness in the industry. I am hoping that the elimination of a couple of competitors, after their merchandise is sold off, causes a nice uptick in customer traffic, and then sales. the last three months of the calendar year may be nice.
Yes. Rumor reported on Bloomberg management has hired an advisor to explore a sale of the company. Nothing officially announced that I can see.
Why do these folks only sell low end merchandise? At least for the camping stuff for which I am familiar, I don't see any middle of the line brands like Kelty or Eureka. I would think they would at least try to be a fairly serious sporting goods supplier rather than just compete against merchandise you would find at a Walmart. Maybe that is a niche but I would think it would be hard to compete against big retailers.
I never been to a store nor do have I followed the company much so any feed back is appreciated. It looks like the share price is very reasonable. Also, they may benefit from some recent bankruptcies resulting in less competition.
I agree this goes to $5-6 in the recession. I see no way they are profitable for the rest of the year. Last quarter was a 5 cent loss per share and I expect this to continue. So paying the dividend when you are not making money is not wise.
My wife and I buy all of our sport shoes online.
The newspapers yesterday reported that Sports Authority was unable to sell any of their stores in bankruptcy and would liquidate the inventory. This is going to take 3-6 months to sell off 450 stores of inventory. Frankly, I think Big 5's recent loss could widen if this much inventory impacts Big 5 more than all think.
Not wise to buy at this price as the share price has been dropping all year, month after month and imagine it will continue until the end of the year.
i bought a tiny bit. trading below book, nice div, making money. and with sports authority gone, one less competitor. i'll double down in the low 7's, but this is only a trade for me, as retail is very tough for long term.
So we will be looking at new cyclical lows in regard to share price. I was two of the units, one in Orange County and one in San Diego County. I purchased a pair of shoes for $65. It was mid day, and it did seem slow with some but not a lot of floor traffic.
Though the wage increase did have some impact, the real issue is the constant dropping of the gross margin over the years, especially for the past 2.5 years. The wage may drop EPS for about $0.1/yr. But margin issue has a much significant impact of at least $0.5/yr. You can see these numbers in 10-K/10-Q. I hope some analyst would bring up the question on the next call and ask the management to explain different margin trajectory between BGFV and DKS/CAB/HIBB.