Big 5 Sporting Goods Corp (BGFV) 2024 Q2 法說會逐字稿

Good day, ladies and gentlemen. Welcome to the Big 5 Sporting Goods second quarter 2024 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.

美好的一天，女士們先生們。歡迎參加 5 強體育用品公司 2024 年第二季獲利電話會議。今天的通話正在錄音。今天與我們在一起的有 Big 5 Sporting Goods 總裁兼執行長 Steve Miller 先生和財務長 Barry Emerson 先生。現在，我想將會議交給米勒先生進行開場發言和介紹。請繼續，先生。

Thank you, operator. Good afternoon, everyone. Welcome to our 2024 second quarter conference call. Today, we will review our financial results for the second quarter of fiscal 2024, as well as provide an outlook for the third quarter.

謝謝你，接線生。大家下午好。歡迎參加我們的 2024 年第二季電話會議。今天，我們將回顧 2024 財年第二季的財務業績，並對第三季進行展望。

I will now turn the call over to Barry to read our Safe Harbor statement.

我現在將把電話轉給巴里，讓他閱讀我們的安全港聲明。

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 provision 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.

謝謝，史蒂夫。除歷史事實陳述外，我們可能對未來預期、計畫和前景發表的任何言論均構成根據 1995 年《私人證券訴訟改革法案》安全港條款作出的前瞻性陳述。前瞻性陳述涉及已知和未知的風險和不確定性，可能導致我們當前和未來時期的實際結果與預測結果有重大差異。這些風險和不確定性包括我們在 10-K 表中的年度報告、在 10-Q 表中的季度報告以及我們向美國證券交易委員會提交的其他文件中更全面描述的風險和不確定性。我們不承擔修改或更新我們或代表我們不時做出的任何前瞻性陳述的義務。

Thank you, Barry.

謝謝你，巴里。

We reported second quarter results that were consistent with our guidance as we continue to feel the impact of sustained pressures to consumer discretionary spending. Net sales for the second quarter were $199.8 million compared to $223.6 million in the prior year, with same-store sales down 9.9%. There were a couple of calendar shifts that impacted our second quarter. In April, we benefited from an extra sales day as the Easter holiday when our stores were closed occurred in Q1 this year as opposed to the second quarter last year. However, this benefit was offset at the end of the quarter by the shift of the 4th of July holiday further into the third quarter this year versus last.

我們報告的第二季業績與我們的指導一致，因為我們繼續感受到消費者可自由支配支出持續壓力的影響。第二季淨銷售額為 1.998 億美元，而上年同期為 2.236 億美元，同店銷售額下降 9.9%。有幾個日曆變化影響了我們的第二季。4月份，我們受益於額外的銷售日，因為今年第一季是復活節假期，我們的商店關門，而不是去年第二季。然而，這一收益在季度末被今年 7 月 4 日假期與去年相比進一步推遲到第三季度所抵消。

From a product category perspective, trends were fairly consistent across each of our major merchandise categories with apparel down approximately 8%, footwear down approximately 9% and hard goods down approximately 11%. Our average ticket was down low single digits, while our transaction count was down high single digits, which we believe largely reflects the broad-based macroeconomic challenges impacting consumers. Our merchandise margins in the second quarter decreased 27 basis points compared to the prior year, and we closed the quarter with a 10.8% reduction in inventory. Given the sales headwinds, our team is keenly focused on aligning our inventory levels with our current sales trending. This enables us to better optimize gross profit dollars, while also keeping us well positioned to take advantage of potential opportunistic buys that may present in the marketplace.

從產品類別的角度來看，我們每個主要商品類別的趨勢都相當一致，其中服裝下降約 8%，鞋類下降約 9%，耐用品下降約 11%。我們的平均票價下降了低個位數，而我們的交易數量下降了高個位數，我們認為這在很大程度上反映了影響消費者的廣泛宏觀經濟挑戰。我們第二季的商品利潤率比去年同期下降了 27 個基點，本季末庫存減少了 10.8%。考慮到銷售逆風，我們的團隊專注於使我們的庫存水準與當前的銷售趨勢保持一致。這使我們能夠更好地優化毛利，同時也使我們能夠充分利用市場上可能出現的潛在機會主義購買。

Now commenting on our third quarter, we started the quarter strong as sales not only benefited from the calendar shift of 4th of July, but also from exceptional summer product sales over the long holiday weekend when we benefited from a heat wave across much of our geography. Since then, our sales comparisons have softened as we began comping against very favorable summer weather last year, which contributed to July being the strongest month of last year's third quarter.

現在評論我們的第三季度，我們在本季度開始表現強勁，因為銷售不僅受益於7 月4 日的日曆轉換，而且還受益於長假週末的出色夏季產品銷售，當時我們受益於我們大部分地區的熱浪。從那時起，我們的銷售比較有所減弱，因為我們開始與去年非常有利的夏季天氣進行比較，這導致 7 月成為去年第三季最強勁的月份。

Quarter to date, same-store sales are currently tracking down approximately 7%. Although we remain cautious, given the ongoing economic pressures affecting consumers, we anticipate benefiting from easing year-over-year comparisons as the quarter progresses. This is reflected in our third quarter guidance, which calls for same-store sales to decline in the mid-single digit range.

本季迄今為止，同店銷售額目前下降了約 7%。儘管我們仍然保持謹慎態度，但考慮到影響消費者的持續經濟壓力，我們預計隨著本季度的進展，同比比較的緩和將受益。這反映在我們第三季的指導中，該指引要求同店銷售額下降在中個位數範圍內。

The current operating environment reflects a continuation of persistent macroeconomic challenges. There is no question that our core customer is feeling the cumulative impact of inflationary pressures in key areas such as gas, rent, groceries and interest rates. In these times, we believe that given our attractive price points and strong value proposition, we are likely benefiting from trade down activity. However, these gains have not been large enough to offset the widespread contraction in discretionary spending that is impacting the retail industry at large.

當前的經營環境反映出持續存在的宏觀經濟挑戰。毫無疑問，我們的核心客戶正在感受到天然氣、租金、雜貨和利率等關鍵領域通膨壓力的累積影響。在這些時候，我們相信，鑑於我們有吸引力的價格點和強大的價值主張，我們可能會從降價活動中受益。然而，這些收益還不足以抵消對整個零售業產生影響的可自由支配支出的普遍收縮。

We're not simply waiting for the tide to turn. We are actively managing the business with discipline as we navigate through the cycle. Our product assortment is well positioned to meet demand for crucial upcoming periods, including back-to-school, fall team sports and the Labor Day holiday. We expect that as we emerge from this current period of constrained discretionary spending, our current strategies and operational efficiencies will position us to return to sales and earnings growth.

我們並不是簡單地等待潮流轉變。在整個週期中，我們正在積極、嚴格地管理業務。我們的產品種類能夠很好地滿足即將到來的關鍵時期的需求，包括返校、秋季團體運動和勞動節假期。我們預計，隨著我們擺脫當前可自由支配支出受限的時期，我們當前的策略和營運效率將使我們能夠恢復銷售和獲利成長。

At this time, given the uncertainty of the duration of the challenged macroeconomic environment and our priority of maintaining a healthy balance sheet, we believe that the suspension of our dividend is a prudent step to provide added financial flexibility. We remain steadfast in our commitment to maximizing shareholder value. And as we always have, we will continue to evaluate opportunities to return value to shareholders.

目前，考慮到充滿挑戰的宏觀經濟環境持續時間的不確定性以及我們維持健康資產負債表的首要任務，我們認為暫停派發股利是提供額外財務靈活性的審慎步驟。我們始終堅定不移地致力於實現股東價值最大化。一如既往，我們將繼續評估為股東回報價值的機會。

With that, I'll now turn it over to Barry to provide additional details regarding our second quarter performance and third quarter outlook.

現在，我將把它交給巴里，提供有關我們第二季度業績和第三季前景的更多詳細資訊。

Thanks, Steve. Gross profit for the fiscal 2024 second quarter was $58.7 million compared to gross profit of $71.9 million in the second quarter of the prior year. Our gross profit margin of 29.4% in the 2024 second quarter compared to 32.2% in the second quarter of last year. The decrease in gross profit margin versus the prior year primarily reflected higher store occupancy and distribution expense, including cost capitalized in the inventory as a percentage of net sales. Merchandise margins for the second quarter of 2024 decreased 27 basis points versus the prior year period.

謝謝，史蒂夫。2024 財年第二季的毛利為 5,870 萬美元，而上年第二季的毛利為 7,190 萬美元。2024 年第二季我們的毛利率為 29.4%，去年第二季為 32.2%。毛利率較上年下降主要反映了商店佔用率和分銷費用的增加，包括庫存資本化成本佔淨銷售額的百分比。2024 年第二季的商品利潤率較去年同期下降 27 個基點。

Overall, selling and administrative expense for the fiscal 2024 second quarter decreased $0.2 million compared to the prior year. The year-over-year reduction primarily reflected lower employee labor and staffing expense, and reduced performance-based incentive accruals. As a percent of net sales, selling and administrative expense was 36.1% in the 2024 second quarter versus 32.4% in the 2023 second quarter, reflecting the lower sales base. We remain committed to diligently managing the expenses within our control, especially against the backdrop of stubborn, broad-based cost inflation. We continue to optimize store labor hours, which is particularly important as we navigate substantial increases in minimum wage rates across our markets.

整體而言，2024 財年第二季的銷售和管理費用比前一年減少了 20 萬美元。同比減少主要反映了員工勞動力和人員費用的減少以及基於績效的應計獎勵的減少。2024 年第二季銷售和管理費用佔淨銷售額的百分比為 36.1%，而 2023 年第二季為 32.4%，反映出銷售基礎較低。我們仍然致力於在我們的控制範圍內努力管理費用，特別是在頑固的、廣泛的成本通膨的背景下。我們繼續優化商店的工作時間，這在我們推動整個市場最低工資率大幅提高的情況下尤其重要。

Now looking at our bottom line, net loss for the second quarter of fiscal 2024 was $10 million or $0.46 per basic share. This compares to a net loss of $0.3 million or $0.01 per basic share in the second quarter of 2023. EBITDA was negative $8.7 million for the second quarter of fiscal 2024 compared to a positive $4.2 million in the second quarter last year.

現在看看我們的底線，2024 財年第二季的淨虧損為 1,000 萬美元，或每股基本股 0.46 美元。相比之下，2023 年第二季的淨虧損為 30 萬美元，即每股基本股虧損 0.01 美元。2024 財年第二季 EBITDA 為負 870 萬美元，而去年第二季為正 420 萬美元。

Briefly reviewing our 2024 first half results, net sales were $393.3 million compared to net sales of $448.5 million in the first 26 weeks of last year. Same-store sales decreased 11.7% in the first half of fiscal 2024 versus the comparable period last year. Net loss for the first half of 2024 was $18.3 million or $0.84 on a per share basis. This compares to a [net] loss for the first half of 2023 of $0.1 million or breakeven on a per share basis. EBITDA was negative $15.2 million for the 2024 year-to-date period compared to positive EBITDA of $8.6 million in the comparable period last year.

簡單回顧我們 2024 年上半年的業績，淨銷售額為 3.933 億美元，而去年前 26 週的淨銷售額為 4.485 億美元。2024 財年上半年同店銷售額較去年同期下降 11.7%。2024 年上半年的淨虧損為 1,830 萬美元，即每股虧損 0.84 美元。相較之下，2023 年上半年的[淨]虧損為 10 萬美元，即每股損益平衡。2024 年迄今，EBITDA 為負 1,520 萬美元，而去年同期的 EBITDA 為正 860 萬美元。

Turning to the balance sheet, our merchandise inventory at the end of the second quarter of fiscal 2024 decreased 10.8% year over year. As Steve indicated, this reduction reflects our efforts to manage inventory levels lower in response to the soft sales environment. Reviewing our capital spending, our CapEx, excluding noncash acquisitions, totaled $6.3 million for the first half of fiscal 2024, primarily representing investments in store-related remodeling, distribution center equipment, and computer hardware and software purchases. For the 2024 full year, we now expect CapEx in the range of $9 million to $14 million. For fiscal 2024, we anticipate opening approximately three new stores and closing approximately 11 stores as part of our ongoing efforts to optimize our store base, resulting in approximately 422 stores in operation at the end of the year.

轉向資產負債表，2024 財年第二季末我們的商品庫存年減 10.8%。正如史蒂夫指出的那樣，這種減少反映了我們為應對疲軟的銷售環境而努力降低庫存水準。回顧我們的資本支出，2024 財年上半年我們的資本支出（不包括非現金收購）總計 630 萬美元，主要代表對商店相關改造、配送中心設備以及電腦硬體和軟體採購的投資。對於 2024 年全年，我們目前預計資本支出將在 900 萬美元至 1,400 萬美元之間。2024 財年，我們預計將開設約 3 家新店並關閉約 11 家門市，作為我們不斷優化門市基礎的努力的一部分，到年底約有 422 家門市在營運。

Now looking at our cash flow, net cash used in operating activities was $2.9 million in the first half of fiscal 2024. This compares to net cash used in operating activities of $3.3 million in the comparable period last year. The decreased cash used in operating activities for the current year primarily reflected reduced funding of merchandise inventory and a smaller decrease in accrued expenses, partially offset by a larger net loss for the period.

現在看看我們的現金流，2024 財年上半年營運活動使用的淨現金為 290 萬美元。相較之下，去年同期經營活動使用的現金淨額為 330 萬美元。本年度經營活動所使用的現金減少主要反映了商品庫存資金的減少和應計費用的減少，但部分被當期較大的淨虧損所抵銷。

Our balance sheet at the end of the second quarter of fiscal 2024 remains healthy. We had zero borrowings under our credit facility and a cash balance of $4.9 million, consistent with our position at the end of Q2 2023. As Steve mentioned, the decision to suspend our quarterly cash dividend reflects our capital management objective of maintaining a healthy financial condition as we work through the duration of the current challenging microeconomic climate.

截至 2024 財年第二季末，我們的資產負債表依然健康。我們的信貸安排下的借款為零，現金餘額為 490 萬美元，與 2023 年第二季末的情況一致。正如史蒂夫所提到的，暫停季度現金股利的決定反映了我們的資本管理目標，即在當前充滿挑戰的微觀經濟環境下保持健康的財務狀況。

Now, I'll spend a moment on guidance. For the fiscal 2024 third quarter, we expect same-store sales to decrease in the mid-single digit range compared to the 2023 third quarter. Our same-store sales guidance reflects an expectation that macroeconomic headwinds will continue to impact consumer discretionary spending over the balance of the quarter. Fiscal 2024 third quarter net loss per basic share is expected in the range of $0.15 to $0.35, which compares to 2023 third quarter net income per diluted share of $0.08.

現在，我將花一點時間進行指導。對於 2024 財年第三季度，我們預期同店銷售額與 2023 年第三季相比將出現中個位數下降。我們的同店銷售指引反映了宏觀經濟逆風將在本季剩餘時間持續影響消費者可自由支配支出的預期。2024 財年第三季每股基本每股淨虧損預計在 0.15 美元至 0.35 美元之間，而 2023 年第三季稀釋後每股淨利為 0.08 美元。

That concludes our prepared remarks. I will now turn the call back to Steve for closing comments.

我們準備好的演講到此結束。我現在將把電話轉回史蒂夫以徵求結束意見。

Thank you, Barry. Thank you all for joining us on today's call. We appreciate your interest in Big 5 Sporting Goods and look forward to speaking with you again after the conclusion of our third quarter.

謝謝你，巴里。感謝大家參加今天的電話會議。我們感謝您對 Big 5 Sporting Goods 的興趣，並期待在第三季結束後再次與您交談。

Thank you. Ladies and gentlemen, this does conclude today's teleconference. Thank you for your participation. You may now disconnect your lines.

謝謝。女士們、先生們，今天的電話會議到此結束。感謝您的參與。現在您可以斷開線路。