(RTTNews) - Big 5 Sporting Goods Corp.
(BGFV), a sporting goods retailer, reported first quarter net income of $4.1 million or $0.19 per diluted share, compared to $7.6 million or $0.33 per diluted share in the prior year period.
Quarterly net sales declined to $212.9 million from $217 million in the same period last year. Same store sales declined 5.1% for the first quarter.
Analysts polled by First Call/Thomson Financial expected the company to report earnings for the quarter of $0.19 per share on $213.93 million revenues.
The company attributed the sales decline to weakness in the consumer environment, which contributed to a decrease in customer traffic and continued deterioration in roller shoe product category performance.
Gross profit and margin for quarter was $71.6 million and 33.6% respectively, compared to $75.8 million and 34.9% in the first quarter of the prior year. The company noted that an 83 basis-point decline in product selling margins and higher store occupancy costs resulted in the gross profit margin decline.
Looking ahead for the second quarter, the company estimates decline in same store sales in the mid-single digit range and earnings per diluted share in the range of $0.06 to $0.12.
For fiscal 2008, the company still expects same store sales to decline in the low to mid-single digit range. The company currently expects earnings per diluted share in the range of $0.60 to $0.85, versus the previously expected range of $0.75 to $1.00.
Analysts expect the company to earn $0.15 per share for the second quarter and $0.87 per share for fiscal year.
Further, the company noted that it anticipates the remainder of the year to be challenging as a result of continuing softness in the consumer environment and unpredictability of customer traffic and sales.
Big 5 Sporting Goods also declared a quarterly cash dividend of $0.09 per share of outstanding common stock, payable on June 13, 2008 to stockholders of record as of May 30, 2008.
In addition, the company, which operated 364 stores at the end of the first quarter, said it expects opening three net new stores during the second quarter and nearly 20 new stores, net of relocations and closures, during fiscal 2008.
BGFV closed Wednesday's regular trading session at $9.19.
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