Big 5 Sporting Goods Corp (BGFV) 2024 Q3 法說會逐字稿

Good day. Ladies and gentlemen, welcome to the Big Five Sporting Goods Third Quarter, 2024 Earnings Results Conference Call.

再會。女士們、先生們，歡迎參加五巨頭體育用品 2024 年第三季獲利結果電話會議。

Today's call is being recorded with us today are Mr. Steven Miller, President and Chief Executive Officer; and Mr. Barry Emerson, Chief Financial Officer of Big Five Sporting Goods.

今天的電話錄音由總裁兼執行長史蒂文·米勒 (Steven Miller) 先生主持。以及五巨頭體育用品公司財務長巴里·愛默生先生。

I'd like to turn the floor over to Mr. Miller.

我想請米勒先生發言。

Thank you operator. Good afternoon, everyone. Welcome to our 2024 3rd Quarter Conference Call. Today we will review our financial results for the third quarter of fiscal 2024 as well as provide an outlook for the fourth quarter. I will now turn the call over to Barry to read our safe harbor statement.

謝謝運營商。大家下午好。歡迎參加我們的 2024 年第三季電話會議。今天，我們將回顧 2024 財年第三季的財務業績，並對第四季進行展望。我現在將把電話轉給巴里，讓他宣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 provisions of the Private Security Litigation Reform Act of 1,995. 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.

謝謝，史蒂夫，除了歷史事實的陳述。我們可能對未來的期望、計劃和前景發表的任何言論均構成根據 1,995 年《私人安全訴訟改革法案》的安全港條款做出的前瞻性聲明。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 表格年度報告中更全面描述的風險和不確定性。

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. Please refer to our press release to find a reconciliation of certain non-GAAP financial measures referenced in today's call.

我們向證券交易委員會提交的 10-Q 表格季度報告和其他文件。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。請參閱我們的新聞稿，以了解今天電話會議中提到的某些非公認會計準則財務指標的調節表。

Thank you, Barry. Our third quarter results reflected ongoing economic headwinds influencing consumer spending. Net sales for the third quarter were $220.6 million compared to 239.9 million in the prior year with same store sales down 7.5%.

謝謝你，巴里。我們第三季的業績反映了影響消費者支出的持續經濟逆風。第三季淨銷售額為 2.206 億美元，去年同期為 2.399 億美元，同店銷售額下降 7.5%。

Although our sales remain under pressure, we're encouraged by the sequential improvement in same store sales each quarter this year, a trend that has continued through the 1st month of our fourth quarter.

儘管我們的銷售仍然面臨壓力，但今年每季同店銷售的連續改善令我們感到鼓舞，這一趨勢一直持續到第四季度第一個月。

From a product category perspective in the third quarter, we saw relatively consistent trends across our major merchandise categories which we believe speaks to the pervasiveness of the inflationary pressures that are impacting our core customer.

從第三季的產品類別角度來看，我們看到主要商品類別的趨勢相對一致，我們認為這表明通貨膨脹壓力正在影響我們的核心客戶。

Our apparel and footwear categories were each down approximately 9% and hard goods was down approximately 6%.

我們的服裝和鞋類類別分別下降了約 9%，耐久財類別下降了約 6%。

Despite the overall sales pressure, our average ticket remained relatively stable, declining low single digits while our transaction count was down mid single digits, our merchandise margins in the third quarter decreased 119 basis points compared to the prior year.

儘管整體銷售壓力較大，但我們的平均票價保持相對穩定，下降了低個位數，而交易數量下降了中個位數，第三季度的商品利潤率比去年同期下降了 119 個基點。

While we're focused on optimizing our gross profit dollars, we are mindful of the need to drive top line sales in this challenging environment.

雖然我們專注於優化毛利，但我們也意​​識到在這個充滿挑戰的環境中推動營收成長的必要性。

We are carefully evaluating our pricing strategies across categories and looking to target areas where we believe we can benefit from energizing sales by being responsive to market conditions.

我們正在仔細評估我們的跨類別定價策略，並尋找我們認為可以透過對市場狀況做出反應來刺激銷售並從中受益的目標領域。

Our team continues to do an excellent job managing inventory. As of the end of the quarter, our inventory levels were down 8.7% year over year. Reflecting our ongoing efforts to align inventories with our sales performance.

我們的團隊繼續出色地管理庫存。截至本季末，我們的庫存水準年減 8.7%。反映了我們為使庫存與銷售業績保持一致所做的持續努力。

This disciplined approach provides us flexibility to capitalize on opportunistic buys and will keep us well positioned to respond swiftly to evolving consumer demand when macroeconomic conditions improve.

這種嚴格的方法使我們能夠靈活地利用機會主義購買，並使我們能夠在宏觀經濟狀況改善時迅速響應不斷變化的消費者需求。

Now, commenting on our fourth quarter outlook, we anticipate same store sales in the range of positive low single digits to negative low single digits compared to the 2023 4th quarter last year. Over the course of the fourth quarter, our markets experienced extraordinarily warm weather and a lack of snow that significantly impacted sales of winter related products which were down nearly 40% versus the prior year.

現在，在評論我們的第四季前景時，我們預計與 2023 年第四季相比，同店銷售額將在正低個位數到負低個位數的範圍內。第四季度，我們的市場經歷了異常溫暖的天氣和缺雪，嚴重影響了冬季相關產品的銷售，與去年同期相比下降了近 40%。

While our outlook anticipates that we should benefit from more normalized weather this year, it also anticipates a continuation of the persistent macroeconomic challenges to consumer spending.

雖然我們的展望預計今年天氣將更加正常化，但我們也預期消費者支出將繼續面臨持續的宏觀經濟挑戰。

Additionally, the Thanksgiving holiday falls late in the calendar this year which compresses the traditional holiday shopping season to account for this shift and help energize what has been a pressured and distracted consumer. We are adjusting our promotional strategy ahead of Thanksgiving in an effort to stimulate sales activity in what has traditionally been a seasonally slow period.

此外，今年的感恩節假期在日曆上較晚，這壓縮了傳統的假期購物季，以適應這種轉變，並有助於為一直面臨壓力和心煩意亂的消費者註入活力。我們正在感恩節前調整我們的促銷策略，以刺激傳統上季節性淡季的銷售活動。

In closing, although we continue to face a challenging environment, we are encouraged by the sequential improvement in same store sales each quarter this year. As I mentioned, that trend has continued into the fourth quarter.

最後，儘管我們繼續面臨充滿挑戰的環境，但今年每季同店銷售額的連續改善令我們感到鼓舞。正如我所提到的，這種趨勢一直持續到第四季。

We believe our inventories are well positioned for the holiday season. We have been effective in managing through clear products and that has enabled us to enhance our product assortments.

我們相信我們的庫存足以應付假期。我們透過清晰的產品進行了有效的管理，這使我們能夠增強我們的產品種類。

A number of our product categories are contributing to the improvements in our sales trending and we are particularly excited with the early reads in our fall and winter apparel.

我們的許多產品類別都有助於改善我們的銷售趨勢，我們對秋冬服裝的早期閱讀感到特別興奮。

Our focus has been and continues to be on managing the aspects of our business that are within our control by doing so we believe we are well positioned to navigate through this current period of constrained discretionary spending.

我們的重點一直並將繼續放在管理我們控制範圍內的業務方面，透過這樣做，我們相信我們能夠很好地度過當前可自由支配支出受限的時期。

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

現在，我將把它交給巴里，提供有關我們第三季度業績和第四季度前景的更多詳細資訊。

Thanks Steve.

謝謝史蒂夫。

Gross profit for the fiscal 2024 3rd quarter was 64.2 million compared to gross profit of 79.6 million in the third quarter of the prior year. Our gross profit margin of 29.1% in the 2024 3rd quarter compared to 33.2% in the third quarter of last year.

2024 財年第三季的毛利為 6,420 萬美元，而上年第三季的毛利為 7,960 萬美元。2024 年第三季我們的毛利率為 29.1%，去年第三季為 33.2%。

The decrease in gross profit margin versus the prior year primarily reflected lower merchandise margins of 119 basis points and higher store occupancy and distribution expense including cost capitalized into inventory as a percentage of net sales. Overall selling and administrative expense for the fiscal 2024 3rd quarter decreased 1.6 million compared to the prior year.

毛利率較上年下降主要反映了商品利潤率下降了 119 個基點，以及商店佔用率和分銷費用（包括資本化成本佔淨銷售額的百分比）增加。2024 財年第三季的整體銷售和管理費用比前一年減少 160 萬人。

The year over year reduction primarily reflected lower legal expense and reduced performance based incentive accruals. As a percent of net sales selling and administrative expense was 34% in the 2024 3rd quarter versus 31.9% in the 2023 3rd quarter. Reflecting the lower sales base, we continue to focus on managing the expenses within our control considering the challenging economic environment.

同比減少主要反映了法律費用的減少和基於績效的應計獎勵的減少。2024 年第三季銷售和管理費用佔淨銷售額的百分比為 34%，而 2023 年第三季為 31.9%。鑑於銷售基礎較低，考慮到充滿挑戰的經濟環境，我們繼續專注於將費用管理在我們的控制範圍內。

Now, looking at our bottom line, net loss for the third quarter of fiscal 2024 was 29.9 million or $1.36 per basic share, and included a non cash charge for the establishment of a valuation allowance related to deferred tax assets of 21.8 million or 99¢ per basic share as well as a non cash store asset impairment charge of 0.7 million or 3¢ per basic share. These non cash charges have no impact on our operations, liquidity or debt covenants for comparison purposes in the third quarter of 2023 we generated net income of 1.9 million or 8¢ per diluted share.

現在，看看我們的底線，2024 財年第三季的淨虧損為2,990 萬美元或每股基本股1.36 美元，其中包括建立與遞延所得稅資產相關的估值備抵的非現金費用為2,180 萬美元或99 美分每基本股 70 萬美元或每基本股 3 美分的非現金商店資產減損費用。出於比較目的，這些非現金費用對我們的營運、流動性或債務契約沒有影響，2023 年第三季我們產生了 190 萬美元的淨利潤或稀釋後每股收益 8 美分。

Adjusted EBITDA was negative 5.1 million for the third quarter of fiscal 2024 compared to positive EBITDA of 7.4 million in the third quarter last year. Briefly reviewing our results for the first nine months of 2024. Net sales were 613.8 million compared to net sales of 688.4 million in the first nine months of last year. Same store sales decreased 10.2% in the first nine months of fiscal 2024 versus the comparable period last year.

2024 財年第三季調整後 EBITDA 為負 510 萬美元，而去年第三季調整後 EBITDA 為 740 萬美元。簡單回顧我們 2024 年前 9 個月的表現。淨銷售額為 6.138 億美元，而去年前 9 個月的淨銷售額為 6.884 億美元。2024 財年前 9 個月的同店銷售額與去年同期相比下降了 10.2%。

Net loss for the first nine months of fiscal 2024 was 48.2 million or $2.20 per basic share including the non cash valuation allowance for deferred tax assets and the non cash store as asset impairment charge I mentioned. Adjusted EBITDA was negative 20.3 million for the 2024 year-to-date period compared to positive EBITDA of 16 million in the comparable period last year.

2024 財年前九個月的淨虧損為4,820 萬美元，即每股基本股2.20 美元，包括我提到的遞延稅務資產的非現金估值備抵和作為資產減損費用的非現金儲備。2024 年迄今，調整後 EBITDA 為負 2,030 萬美元，而去年同期的調整後 EBITDA 為 1,600 萬美元。

Turning to the balance sheet, our merchandise inventory at the end of the third quarter of fiscal 2024 decreased 8.7% year over year. This reduction reflects our efforts to manage inventory levels lower in response to the soft sales environment.

轉向資產負債表，2024 財年第三季末我們的商品庫存年減 8.7%。這一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。

Reviewing our capital spending, our CapEx excluding noncash acquisitions totaled 8.9 million for the first nine months of fiscal 2024, primarily representing investments in store related remodeling new stores, distribution center equipment and computer hardware and software purchases. For the 2024 full year, we expect CapEx in the range of 10 to 14 million. For fiscal 2024, we anticipate opening three new stores and closing 11 stores, as part of our ongoing efforts to optimize our store base, resulting in 422 stores in operation at the end of the year.

回顧我們的資本支出，2024 財年前9 個月，我們的資本支出（不包括非現金收購）總計890 萬美元，主要代表與商店相關的新店改造、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，我們預計資本支出將在 1,000 至 1,400 萬美元之間。2024 財年，我們預計將開設 3 家新店並關閉 11 家門市，作為我們持續優化門市基礎的一部分，到年底經營門市數量將達到 422 家。

Now, looking at our cash flow, net cash provided by operating activities was 9.1 million in the first nine months of fiscal 2024. This compares to net cash provided by operating activities of 21.1 million in the comparable period last year.

現在，看看我們的現金流，2024 財年前 9 個月經營活動提供的淨現金為 910 萬美元。相比之下，去年同期經營活動提供的淨現金為 2,110 萬美元。

The decrease is primarily attributed to a net loss in the current period, partially offset by reduced funding of merchandise inventory.

減少的主要原因是本期淨虧損，但部分被商品庫存資金減少所抵銷。

Our balance sheet at the end of the third quarter of fiscal 2024 remains healthy. We had zero borrowings under our credit facility and a cash balance of 4 million.

截至 2024 財年第三季末，我們的資產負債表依然健康。我們的信貸額度為零借款，現金餘額為 400 萬美元。

As we navigate this dynamic market environment and execute our strategy, we remain focused on maintaining a healthy and flexible financial condition.

在我們應對這個動態的市場環境並執行我們的策略時，我們仍然致力於保持健康和靈活的財務狀況。

Now I'll spend a moment on guidance. For the fiscal 2024 4th quarter, we expect same store sales in the range of positive low single digits to negative low single digits compared to the 2023 4th quarter. As Steve mentioned, our same store sales guidance reflects an expectation that macro economic headwinds will continue while we also expect that our results will benefit from winter weather normalizing relative to last year.

現在我將花一點時間進行指導。對於 2024 財年第四季度，我們預計與 2023 年第四季相比，同店銷售額將在正低個位數到負低個位數之間。正如史蒂夫所提到的，我們的同店銷售指引反映了宏觀經濟逆風將持續的預期，同時我們也預期我們的業績將受益於冬季天氣相對於去年的正常化。

In connection with establishing a valuation allowance in the fiscal 2024 3rd quarter related to deferred tax assets, we do not anticipate realizing any income tax benefit in the fiscal 2024 4th quarter, which will result in a tax provision of approximately zero for the quarter. On this basis, We expect fiscal 2024 4th quarter net loss per basic share in the range of 80¢ to $1.05. For prior period comparison purposes, assuming an estimated effective tax rate of 26.3%, we expect fiscal 2024 4th quarter adjusted net loss per basic share in the range of 59 to 77¢. This compares to fiscal 2023 4th quarter, debt loss per basic share of 41¢ which was not impacted by the deferred tax asset valuation allowance.

關於在 2024 財年第三季建立與遞延所得稅資產相關的估值備抵，我們預計不會在 2024 財年第四季實現任何所得稅優惠，這將導致該季度的稅收撥備大約為零。在此基礎上，我們預計 2024 財年第四季每股基本股淨虧損在 80 美分至 1.05 美元之間。出於前期比較的目的，假設估計有效稅率為 26.3%，我們預計 2024 財年第四季調整後每股基本股淨虧損在 59 至 77 美分之間。相較之下，2023 財年第四季度，每股基本份額債務損失為 41 美分，不受遞延稅資產估價津貼的影響。

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 Five Sporting Goods and looking forward to speaking with you again after the conclusion of our fourth quarter.

謝謝你，巴里。感謝大家參加今天的電話會議，我們感謝您對五巨頭體育用品的興趣，並期待在第四季度結束後再次與您交談。

This concludes today's teleconference. You may disconnect your lines at this time. Thank you again for your participation.

今天的電話會議到此結束。此時您可以斷開線路。再次感謝您的參與。