Q2 2024 Big 5 Sporting Goods Corp Earnings Call

Operator: Good morning, ladies and gentlemen. Welcome to the Big 5 Sporting Goods 2nd Quarter 2024 Earnings Results Conference Call. Today's call has been 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,

Operator: Good day, ladies and gentlemen. Welcome to the Big 5 Sporting Goods 2nd quarter, 2024 earnings results conference call.

Speaker Change: Good day ladies and gentlemen, welcome to the Big 5 Sporting Goods 2nd Quarter 2024 Earnings Results Conference Call.

Operator: Today's call has been recorded.

Operator: With us today, Mr. Steve Miller, President and Chief Executive Officer, and Mr. Barry Emerson, Chief Financial Officer, of Big 5 Sporting Goods.

Speaker Change: 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.

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

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

Steve Miller: Thank you, operator.

Steven G. Miller: Thank you, operator. Good afternoon, everyone.

Steve Miller: Good afternoon, everyone. Welcome to our 2024 2nd quarter conference call. Today we will review our financial results for the 2nd quarter of fiscal 2024, as well as provide an outlook for the 3rd quarter.

Speaker Change: Thank you, operator.

Steven G. Miller: 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. I will now turn the call over to Barry to read our safe harbor statement. Thanks, Steve.

Steven G. Miller: 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. I will now turn the call over to Barry to read our Safe Harbor statement.

Barry Emerson: I will now turn the call over to Barry to read our safe harbor statement. 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 provided by the Securities Litigation Reform Act of 1995. Forward-looking statements involved known and unknown risk 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.

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 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.

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 Provision in the Private Securities Litigation Reform Act of 1995.

Barry D. Emerson: 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.

Barry D. Emerson: 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.

Barry Emerson: 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.

Barry D. Emerson: 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.

Steve Miller: Thank you, Barry. We reported 2nd 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 2nd quarter were $199.8 million compared to $223.6 million in the prior year, with savings to our sales down 9.9%.

Steven G. Miller: We reported second-quarter results that were consistent with our guidance as we continue to feel the impact of sustained pressures on 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 are 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 Fourth of July holiday further into the third quarter this year versus last.

Barry D. Emerson: Thank you, Barry. 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.

Barry D. Emerson: 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 percent.

Steve Miller: There were a couple of calendar shifts that impacted our 2nd 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 2nd 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 3rd quarter this year versus last. From a product category perspective, trends were fairly consistent across each of our major merchandise categories, with a parallel down approximately 8%, footwear down approximately 9%, and hard goods down approximately 11%.

Barry D. Emerson: There were a couple calendar shifts that impacted our second quarter.

Barry D. Emerson: In April , we benefited from an extra sales day as the Easter holiday, when our stores are closed, occurred in Q1 this year as opposed to the second quarter last year.

Barry D. Emerson: However, this benefit was offset at the end of the quarter by the shift of the Fourth of July holiday further into the third quarter this year versus last.

Steven G. Miller: 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%. Additionally, 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.

Barry D. Emerson: 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%.

Steve Miller: 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 2nd quarter decreased 27 basis points compared to the prior year, and we closed the quarter with a 10.8 percent 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.

Barry D. Emerson: 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.

Barry D. Emerson: 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.

Steven G. Miller: 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. Now, commenting on our third quarter.

Barry D. Emerson: Given the sales headwinds, our team is keenly focused on aligning our inventory levels with our current sales trending.

Barry D. Emerson: 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.

Steve Miller: 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 copying against very favorable summer weather last year, which contributed to July being the strongest month of last year's third quarter. Quarter to date, same-ster 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.

Barry D. Emerson: Now commenting on our third quarter.

Steven G. Miller: 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. Order-to-date same-store sales are currently tracking down approximately 7%.

Barry D. Emerson: 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.

Barry D. Emerson: 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.

Barry D. Emerson: Quarter-to-date same-store sales are currently tracking down approximately 7%.

Steven G. Miller: 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.

Barry D. Emerson: Although we remain cautious given the ongoing economic pressures affecting consumers, we anticipate benefiting from easing year-over-year comparisons as the quarter progresses.

Steve Miller: This is reflected in our third quarter guidance, which calls for same-store sales to decline in the mid-single-digit range.

Barry D. Emerson: This is reflected in our third quarter guidance, which calls for same-store sales to decline in the mid-single-digit range.

Steve Miller: The current operating environment reflects a continuation of persistent macroeconomic challenges. There is no question that our poor 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 and discretionary spending that is impacting the retail industry at large.

Steven G. Miller: 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.

Barry D. Emerson: The current operating environment reflects a continuation of persistent macroeconomic challenges.

Barry D. Emerson: 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.

Barry D. Emerson: In these times, we believe that given our attractive price points and strong value proposition, we are likely benefiting from trade-down activity.

Barry D. Emerson: However, these gains have not been large enough to offset the widespread contraction in discretionary spending that is impacting the retail industry at large.

Steve Miller: We are 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 strain, discretionary spending, our current strategies and operational efficiencies will position us to return to sales and earnings growth.

Steven G. Miller: We're not simply waiting for the tide to turn. We're actively managing the business with discipline as we navigate through this 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.

Barry D. Emerson: We're not simply waiting for the tide to turn.

Barry D. Emerson: We're actively managing the business with discipline as we navigate through this cycle.

Barry D. Emerson: 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.

Barry D. Emerson: 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.

Steve Miller: 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.

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

Barry D. Emerson: 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.

Barry D. Emerson: 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.

Barry Emerson: With that, I'll now turn it over to Barry to provide additional details regarding our second quarter performance and third quarter out. 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 2022 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 costs capitalized in the inventory as a percentage of net sales.

Barry D. Emerson: 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 was 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 costs capitalized into inventory as a percentage of net sales.

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

Barry D. Emerson: Thanks, Steve.

Barry D. Emerson: 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.

Barry D. Emerson: Our gross profit margin of 29.4% in the 2024 second quarter compared to 32.2% in the second quarter of last year.

Barry D. Emerson: The decrease in gross profit margin versus the prior year primarily reflected higher store occupancy and distribution expense, including costs capitalized into inventory as a percentage of net sales.

Barry Emerson: Merchandised margins for the second quarter of 2024 decreased 27 basis points versus the prior year period. Overall, selling an 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 an 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.

Barry D. Emerson: Merchandise margins for the second quarter of 2024 decreased 27 basis points versus the prior year period. 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 accrual. As a percent of net sales, selling at administrative expense was 36.1% in the 2024 second quarter versus 32.4% in the 2023 second quarter, reflecting the lower sales base.

Barry D. Emerson: Merchandise margins for the second quarter of 2024 decreased 27 basis points versus the prior year period.

Barry D. Emerson: Overall selling and administrative expense for the fiscal 2024 second quarter decreased $0.2 million compared to the prior year.

Barry D. Emerson: The year-over-year reduction primarily reflected lower employee labor and staffing expense and reduced performance-based incentive accruals.

Barry D. Emerson: As a percent of net sales, selling at administrative expense was 36.1% in the 2024 second quarter versus 32.4% in the 2023 second quarter, reflecting the lower sales base.

Barry D. Emerson: 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 market.

Barry D. Emerson: We remain committed to diligently managing the expenses within our control, especially against the backdrop of stubborn broad-based cost inflation.

Barry Emerson: We continue to optimize store labor hours, which is particularly important as we navigate substantial increases in minimum wage rates across our markets.

Barry D. Emerson: We continue to optimize store labor hours, which is particularly important as we navigate substantial increases in minimum wage rates across our markets.

Barry Emerson: Now looking at our bottom line, net loss for the second quarter of fiscal 2024 was $10 million, or 46 cents per basic share. This compares to a net loss of 0.3 million, or 1 cent 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. Briefly reviewing our 2024 first half results, net sales were 393.3 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.

Barry D. Emerson: Now looking at our bottom line, the net loss for the second quarter of fiscal 2024 was $10,000,000, or 46 cents 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 of last year. Now briefly reviewing our 2024 first half

Barry D. Emerson: Now looking at our bottom line, net loss for the second quarter of fiscal 2024 was 10 million or 46 cents per basic share. This compares to a net loss of 0.3 million or 1 cent per basic share in the second quarter of 2023.

Barry D. Emerson: 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.

Barry D. Emerson: Net sales were $393.3 million compared to net sales of $448.5 million in the first 26 weeks of last year. However, same store sales decreased 11.7% in the first half of fiscal 2024 compared to the comparable period last year. The net loss for the first half of 2024 was $18.3 million, or $0.84 on a per share basis. This compares to a debt loss for the first half of 2023 of $0.1 million, or break even on a per share basis.

Barry D. Emerson: briefly reviewing our 2024 first-half results.

Barry D. Emerson: Net sales were $393.3 million compared to net sales of $448.5 million in the first 26 weeks of last year.

Barry D. Emerson: Same store sales decreased 11.7% in the first half of fiscal 2024 versus the comparable period last year.

Barry Emerson: Net loss for the first half of 2024 was 18.3 million, or 84 cents on a first share basis. This compares to a net loss for the first half of 2023 of 0.1 million, or break even 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.

Barry D. Emerson: Net loss for the first half of 2024 was $18.3 million, or $0.84 on a per share basis.

Barry D. Emerson: This compares to a debt loss for the first half of 2023 of $0.1 million or break even on a per share basis.

Barry D. Emerson: 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. 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. Looking at our capital spending, our CapEx, excluding non-cash 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.

Barry D. Emerson: 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.

Barry Emerson: 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 non-cash 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.

Speaker Change: Turning to the balance sheet, our merchandise inventory at the end of the second quarter of fiscal 2024 decreased 10.8% year-over-year.

Speaker Change: As Steve indicated, this reduction reflects our efforts to manage inventory levels lower in response to the soft sales environment.

Speaker Change: Reviewing our capital spending, our CapEx excluding non-cash 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.

Barry D. Emerson: For the 2024 full year, we now expect CAFX in the range of $9 to $14 million. Additionally, 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. Now looking at our cash flow. Net cash used in operating activities was $2.9 million in the first half of fiscal 2024.

Speaker Change: For the 2024 full year, we now expect CapEx in the range of $9 to $14 million.

Speaker Change: 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.

Barry Emerson: 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 the 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 at a smaller decrease in accrued expenses, partially offset by a larger net loss for the period. Our balance sheet at the end of the second quarter of fiscal 2024 remains healthy. We had zero borrowings under our credit facility in a cash balance of $4.9 million, consistent with our position at the end of Q2 2023.

Barry D. Emerson: This compares the net cash used in operating activities at $3.3 million in the comparable period last year. The decrease in 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. 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.

Speaker Change: Now looking at our cash flow.

Speaker Change: Net cash used in operating activities was $2.9 million in the first half of fiscal 2024. This compares the net cash used in operating activities to $3.3 million in the comparable period last year.

Speaker Change: 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.

Speaker Change: Our balance sheet at the end of the second quarter of fiscal 2024 remains healthy.

Speaker Change: 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.

Barry Emerson: 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.

Barry D. Emerson: 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. 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.

Speaker Change: 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.

Barry Emerson: Now I'll spend a moment on guidance. For the fiscal 2024-3rd quarter, we expect same-store sales to decrease in the mid-single-digit range compared to the 2023-3rd 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 2024-3rd quarter net loss per basic share is expected in the range of 15-35 cents, which compares to 2023-3rd quarter net income per diluted share of 8 cents.

Steven G. Miller: Now I'll spend a moment on guidance.

Steven G. Miller: 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.

Speaker Change: Our same-store sales guidance reflects an expectation that macroeconomic headwinds will continue to impact consumer discretionary spending over the balance of the quarter.

Speaker Change: Fiscal 2024 third quarter net loss per basic share is expected in the range of 15 to 35 cents, which compares to 2023 third quarter net income per diluted share of 8 cents.

Barry Emerson: That concludes our prepared remarks.

Barry D. Emerson: That concludes our prepared remarks. I will now turn the call back to Steve for closing comments. Thank you, Barry.

Steve Miller: I will now turn the call back to Steve for closing comments. Thank you, Barry. Thank you all for joining us on today's call.

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

Steven G. Miller: 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.

Steven G. Miller: 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.

Steve Miller: We appreciate your interest in Big Five Sporting Goods, and look forward to speaking with you again after the conclusion of our third quarter. Thank you.

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

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

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