Big 5's Q3 3008 profit declined 47% as its sales dropped by 3.5% which was caused by a 6.6% decrease in same store sales as fewer consumers spent money amid the nation's econmic slowdown.
Regional sporting-goods retailer Big 5 Sporting Goods Corp. issued 2008 guidance below Wall Street expectations amid a difficult retail environment that has been impacted by a credit crunch.
The company expects earnings of 17 cents to 23 cents per share in the first quarter and 75 cents to $1 per share during fiscal 2008.
Analysts polled by Thomson Financial expected a profit of 24 cents per share in the first quarter and $1.24 per share for the year.
Big 5 reported a 1% slip in sales and a 4.7% decrease in same-store sales--the company's worst quarterly sales in over a decade. Additionally, diminishing sales in roller shoes, once a popular product among children, and weak consumer spending during the holiday season contributed to Big 5's substandard fourth quarter performance.
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