Big 5 Posts 52% Jump in Profit

Big 5 Sporting Goods Corp.’s earnings jumped 52% in the second quarter, the company said Wednesday, as stronger sales of apparel and outdoor goods helped offset the dampening effects of poor weather.

The El Segundo-based retailer, which went public in June 2002, said net income climbed to $6.3 million, or 28 cents a share, from $4.1 million, or 13 cents a share, a year earlier.

After adjusting the year- earlier quarter’s results for one-time events related to the initial public offering, the latest quarter’s net income was up only 3.4% from an adjusted profit of $6.1 million, or 27 cents a share, in the 2002 quarter.

Sales increased 4.6% to $170.1 million. Same-store sales increased 0.9%.

The earnings, which were released after the stock market’s close, were below the consensus analyst estimate of 30 cents a share.

Shares of Big 5 rose 45 cents to $15.45 on Wednesday on Nasdaq.

Analysts seemed pleased with the performance of the 275-store chain, especially given the weaker performance in the quarter by several of its competitors including La Canada Flintridge-based Sport Chalet Inc.

“I think it was a good performance in a tough environment,” said Ian Corydon of B. Riley & Co. of Los Angeles. He rates the stock a “buy.”

“Big 5 has been a consistently good performer in the sporting goods industry,” Corydon said. Neither he nor his company owns shares in Big 5. Riley does not have an investment banking relationship with Big 5.

Big 5 executives said wet, chilly weather in the spring led to a weaker-than-expected performance. Also, sales were sluggish in California, Oregon and Washington, which still are struggling through a weak economy.

However, warming weather brought stronger sales in June of apparel and team sporting goods, Big 5 said, adding that same-store sales should show “low single digit” percentage sales increases in the third and fourth quarters.

Management also reaffirmed its earnings forecast for the entire year of $1.18 to $1.23 a share.