Big 5 Sporting Goods Corp (BGFV) Reports Q3 2023 Earnings, Net Sales Down 8.2%
Big 5 Sporting Goods Corp (NASDAQ:BGFV) reported Q3 2023 net sales of $239.9 million, down from $261.4 million in Q3 2022.
Net income for Q3 2023 was $1.9 million, compared to $6.4 million in the same period last year.
Adjusted EBITDA for Q3 2023 stood at $7.4 million, down from $13.0 million in Q3 2022.
The company declared a quarterly cash dividend of $0.125 per share, a reduction from the previous rate of $0.25 per share.
On October 31, 2023, Big 5 Sporting Goods Corp (NASDAQ:BGFV) announced its financial results for the third quarter of fiscal 2023. The company reported net sales of $239.9 million, a decrease from $261.4 million in the third quarter of fiscal 2022. Same store sales decreased by 8.2% compared to the same period last year.
Financial Performance
Gross profit for Q3 2023 was $79.6 million, compared to $86.6 million in the same quarter of the previous year. The company's gross profit margin was 33.2% in Q3 2023, slightly up from 33.1% in Q3 2022. This increase primarily reflects a 52-basis point increase in merchandise margins and the extinguishment of certain real estate-related liabilities.
Net income for Q3 2023 was $1.9 million, or $0.08 per diluted share, compared to $6.4 million, or $0.29 per diluted share, in Q3 2022. For the first 39 weeks of fiscal 2023, net sales were $688.4 million, compared to $757.2 million in the same period last year. Net income for the first 39 weeks of fiscal 2023 was $1.8 million, or $0.08 per diluted share, compared to $24.4 million or $1.10 per diluted share in the same period of 2022.
Balance Sheet and Dividend
The company ended Q3 2023 with no borrowings under its credit facility and a cash balance of $17.9 million, an increase from $5.9 million at the end of Q2 2023. The company's Board of Directors declared a quarterly cash dividend of $0.125 per share of outstanding common stock, reflecting a reduction from the previous rate of $0.25 per share.
Outlook
For Q4 2023, Big 5 Sporting Goods Corp (NASDAQ:BGFV) expects same store sales to decrease in the high single-digit to low double-digit range compared to Q4 2022. The company anticipates a net loss per share in the range of $0.20 to $0.35, compared to earnings per diluted share of $0.08 in Q4 2022.
Explore the complete 8-K earnings release (here) from Big 5 Sporting Goods Corp for further details.
This article first appeared on GuruFocus.
