Big 5 Sporting Goods Corporation (BGFV) swung to a net profit for the quarter ended Apr. 02, 2017. The company has made a net profit of $5.33 million, or $ 0.24 a share in the quarter, against a net loss of $1.12 million, or $0.05 a share in the last year period.
Revenue during the quarter grew 7.71 percent to $252.60 million from $234.53 million in the previous year period. Gross margin for the quarter expanded 285 basis points over the previous year period to 33.10 percent. Operating margin for the quarter period stood at positive 3.55 percent as compared to a negative 0.11 percent for the previous year period.
Operating income for the quarter was $8.98 million, compared with an operating loss of $0.25 million in the previous year period.
"We are pleased to begin fiscal 2017 with an extraordinarily strong performance," said Steven G. Miller, the Company's chairman, president and chief executive officer. "We realized improvements in both customer transactions and average sale and produced same store sales increases for each of our major merchandise categories of apparel, footwear and hardgoods, while substantially improving merchandise margins for the period. Our team did an outstanding job of extending our market share gains following the store closures by our competitors that occurred last year, as well as capitalizing on the favorable weather conditions that we experienced in a majority of our markets during the first quarter. These efforts led to better than anticipated sales during March and allowed us to produce results meaningfully ahead of the guidance that we issued in late February."
For the second-quarter 2017, Big 5 Sporting Goods Corporation projects diluted earnings per share to be in the range of $0.14 to $0.20.
Working capital declines
Big 5 Sporting Goods Corporation has witnessed a decline in the working capital over the last year. It stood at $152.81 million as at Apr. 02, 2017, down 11.47 percent or $19.80 million from $172.61 million on Apr. 03, 2016. Current ratio was at 1.90 as on Apr. 02, 2017, down from 2.19 on Apr. 03, 2016.
Cash conversion cycle (CCC) has decreased to 33 days for the quarter from 119 days for the last year period. Days sales outstanding were almost stable at 4 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 80 days for the quarter compared with 163 days for the previous year period. At the same time, days payable outstanding went up to 52 days for the quarter from 49 for the same period last year.
Debt comes down significantly
Big 5 Sporting Goods Corporation has recorded a decline in total debt over the last one year. It stood at $25.14 million as on Apr. 02, 2017, down 58.10 percent or $34.86 million from $60.01 million on Apr. 03, 2016. Total debt was 5.87 percent of total assets as on Apr. 02, 2017, compared with 14.07 percent on Apr. 03, 2016. Debt to equity ratio was at 0.12 as on Apr. 02, 2017, down from 0.31 as on Apr. 03, 2016.
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