EL SEGUNDO, Calif. (May 1, 2008)—Leading sporting goods retailer Big 5 Sporting Goods Corp. (BGFV) reported a rough first quarter ended March 30.

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Net sales reached $212.9 million, compared to $217 million for the first quarter of fiscal 2007. Same-store sales were down 5.1 percent. According to the company, these sales are indicative of the week consumer environment, which led to a decline in customer traffic. The poor performance of roller shoe product was offset by strong sales of winter-related products impacted by normal weather conditions. However, the decrease in roller product accounted for 40 percent of the dip in same-store sales. The Easter holiday also played a part in the company’s diminished sales, as stores were closed, and last year the holiday fell in the second quarter.

Net income hit $4.1 million, or $0.19 per diluted share, compared to net income of $7.6 million, or $0.33 per diluted share, for the first quarter of fiscal 2007. Gross profit was $71.6 million, compared to $75.8 million in the first quarter of the prior year.

“Despite a strong first quarter performance by our winter-related product categories, which benefited in part from favorable weather conditions in many of our markets, we were unable to fully offset the general softness in the overall consumer environment and the substantial impact of very negative sales comparisons in our roller shoe category,” says Steven G. Miller, chairman, president and CEO. “Given the difficult consumer climate, we have worked very hard to strengthen the aspects of our business that are within our control, including our inventory position. We improved our total inventory comparisons versus the prior year by approximately $24 million from the end of the fourth quarter of fiscal 2007 to the end of the first quarter of fiscal 2008. These efforts resulted in our inventories being down 5.3 percent on a per-store basis at the end of the first quarter this year compared to the end of the first quarter last year.”

Based on the first quarter’s results, the company will maintain a cautious outlook. “Although first quarter results were in line with our expectations, the continuing softness in the consumer environment and the resulting unpredictability of customer traffic and sales make our ability to forecast the remainder of the year challenging,” Miller continues.

For the second quarter and full-year, Big 5 believes the challenging consumer environment will continue to effect sales. Therefore, comparable store sales are expected to drop in the mid-single digit range during the second quarter and dip in the low- to mid-single digit range for the full year. Earnings per share are anticipated to fall between $0.06 to $0.12 in the second quarter and $0.60 to $0.85 for the entire year.

Only one new store was opened during the first quarter, bringing the total to 364. Three new stores should open in the second quarter, with a total of 20 new doors opening this year.

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