Big 5 bucks growth trend with significant sales drop
Big 5 Sporting Goods has bucked the growth trend set by other large sporting goods retailers by reporting a significant drop in year-on-year revenues.
Dick’s Sporting Goods (861 stores) reported a 7% increase to a record $3.35 billion in the quarter ended January 29th, while Academy Sports + Outdoors (259 stores) saw net sales increase 13.2% in Q4 to a record $1.8 billion.
Big 5’s first quarter revenue was $242 million, down from a record $272.8 million (11.3%) the previous year. The 67-year-old company has 431 stores. Net income for the quarter was $9.1 million, less than half the record $21.5 million recorded during the same quarter the year before.
The Californian company’s Chairman, President, and CEO, Steven G. Miller, attributed some of the loss to ‘unfavourable winter weather, pandemic-related challenges, supply chain disruptions, and inflation pressures.’
“As a reminder, sales in the second quarter of fiscal 2021 benefited from strong pent-up demand following an easing of pandemic-related restrictions,” the company said.
Big 5 reported record sales for Q2 last year, but expects same-store sales to fall into the high teens this year. It plans to open four new stores in 2022.