Big 5 Sporting Goods Corp. (NASDAQ:BGFV) Q2 2020 Earnings Conference Call - Final Transcript

Jul 28, 2020 • 05:00 pm ET

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Big 5 Sporting Goods Corp. (NASDAQ:BGFV) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen. Welcome to the Big 5 Sporting Goods Second Quarter 2020 Earnings Results Conference Call. Today's call is being recorded. With us today are Mr. Steve Miller, President and Chief Executive Officer; and Mr. Barry Emerson, Chief Financial Officer of Big 5 Sporting Goods.

At this time, for opening remarks and introductions, I'd like to turn the conference over to Mr. Miller. Please go ahead, sir.

Executive
Steven G. Miller

Thank you, operator. Good afternoon, everyone. Welcome to our 2020 second quarter conference call. Today, we will review our financial results for the second quarter of fiscal 2020 as well as provide an outlook for the third quarter.

I will now turn the call over to Barry to read our safe harbor statement.

Executive
Barry D. Emerson

Thanks, Steve. Except for statements of historical fact, any remarks that we may make about our future expectations, plans and prospects constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results in current and future periods to differ materially from forecasted results.

These risks and uncertainties include those more fully described in our annual reports on Form 10-K, our quarterly reports on Form 10-Q and our other filings with the Securities and Exchange Commission. We undertake no obligation to revise or update any forward-looking statements that may be made from time to time by us or on our behalf.

Executive
Steven G. Miller

Thank you, Barry. We are pleased to report an exceptional second quarter earnings performance along with an outstanding start to our third quarter. Although the first half of the second quarter was heavily impacted by the COVID-19 pandemic with widespread temporary store closures, we successfully managed through the disruption. In many of our markets, our stores were recognized as essential, and we developed and implemented new social distancing and safety protocols in order to continue to serve our customers safely.

As our stores reopened, we gained tremendous traction in our business. And over the back half of the second quarter, our same-store sales were up 15.5%. In the third quarter, our sales trajectory has accelerated with same-store sales up 31.9% for our fiscal July period, which ended this past Sunday. Our strong recent performance is reflected in our balance sheet, which now has zero debt and a very healthy cash position. As a result, we are reinstating our quarterly cash dividend, which Barry will comment on further in his remarks.

Now I'll take a few moments to touch on our second quarter results and then provide some color on our third quarter to date trending. As previously reported, net sales for the fiscal 2020 second quarter were $227.9 million compared to net sales of $241 million for the second quarter of fiscal 2019. Same-store sales decreased 4.2% for the second quarter of fiscal 2020 compared to a 0.7% increase for the second quarter of fiscal 2019.

Our merchandise margins increased 173 basis points in the