I think the problem might NOT be the eCommerce site but their inventory tracking & consolidation among their stores. Without a solid inventory DB, eCommerce won't work. If they don't have a solid inventory DB, then how reliable is their earning figures?
With how smalls their stores are, that would be executive incompetency at its finest.
Agree. You walk into a Big5, it gives you the feeling of old, unorganized. How can a sport store gives you "Old" & "Unorganized" feeling? Should a sport equipment store be energetic, refresh, bright?
The management should consider to implement 5S at all stores (Google it and you'll know what that it).
Wouldn't the eCommerce end of things be handled like a separate business or store with its own inventory??
It depends on their business model. If franchising is in their objectives then ecommerce shld be handled like a store w it's own inventory (& get a cut if refer a business to a franchised store). Otherwise, ecommerce shld be handled like a separate business channel with different strategy / pricing model and compete with competitors' online stores.
Too much nice action today for the day before earnings are announced tomorrow after close. Unless they really beat the numbers, they are in for some disappointments.
Don't get me wrong - I'm hoping they really beat expectations - but I don't know why they would.
I think that they just might be able to, at least occasionally, have something at a nice price - and for those of us on the east coast that may be worth something to them.
I agree good Q but that EPS guidance spooks me a bit. single digit revenue increase for Q4 which is good, but lowered EPS (.18 vs. est .22)
I am surprised by Q4 EPS. Either they want to set the expectation really low, or they will have major promotion that cuts the margin in a significant way. I would think it's the later, as the CEO said
While the key holiday selling period lies ahead, we believe we are well positioned to drive traffic and sales with a compelling merchandise assortment and exciting promotional plans.
I think another reason why Q4 guidance is come down is weather. Earlier this year (till August), it's predicted that CA will be very wet this winter, which will be a big driver for BGFV Q4 sale. But the various new forecast that came out during the past 2 months did a complete U-turn, Another drought winter is the current forecast.
I listened to the cc. I thought there was lots of good news. They beat expectations, despite the "head winds" they often cited - the bad weather, poor firearms and ammunition sales, and a poor start in July. Yes, their guidance may have been a little weak, but they said that the increased sales comparisons continued in October, although October is the smallest sales month of the pending quarter. They may just be a little conservative on the guidance they set out (and I don't think it was much off of the analysts), perhaps a good policy when setting the bar.
I personally believe that they are finding nice sales in the apparel, as many like to wear their sports and teams items. Maybe that will bear well as San Francisco is in the World Series, and they are a west coast company. But fans' purchases just seem to be up in general. If they can continue their increased October sales into the balance of the quarter, maybe they can start a nice run for next year.
Looking again at the written release, I don't think you should worry about the guidance being less than analysts - first, it is at 14 to 22 cents, while the analysts average out at 22. Given that there sales are trending at more than last year, that augers well for their guidance being conservative.
Further, one should factor in the stock repurchases - they have bought more since last year, and at low prices. That should also increase the per share analysis.
The only factor against they is that this year's third quarter was less than last year, and last year was about 23 cents for the fourth quarter, so maybe the trend is less than the 23 cents of last year. But I then return to the nice sales of the 3rd quarter, initial indications that it is continuing, and less shares that will increase the per share profit.
We will see what the markets say tomorrow. But I bought inot this company as a value play, so I have some patience.