Seattle, WA  11/2/2012 (BasicsMedia)  —  Big 5 Sporting Goods (NASDAQ:BGFV) is up big this morning..after they adressed ways to improve shareholder value, they did this by paying a dividend of .075 cents a share and initiated a program to buy back shares.  It was a good time to do this becuase 2012 had shares opening this year at $10 p/s and this gets them a nice pop into year end.

The company said, “We are extremely pleased with our third quarter results, which built on the positive momentum in the second quarter and exceeded our earnings guidance,” said Steven G. Miller, the Company’s Chairman, President and Chief Executive Officer. “We experienced improvement in both customer traffic and average sale, as well as expanded merchandise and operating margins. The strength of our performance was broad-based, as same store sales increased in each of our geographic regions and across all of our major product categories of apparel, footwear and hardgoods. We believe our business has continued to benefit from the merchandise and marketing initiatives that we have implemented over the last year. Additionally, our summer product sales benefited from relatively favorable weather compared to the prior year.”

“We believe our third quarter results illustrate our ability to meaningfully leverage expenses and drive earnings growth as our sales improve,” continued Mr. Miller. “Along with our strong sales and margin results, we reduced inventory levels per-store at quarter end by 3.7% versus the prior year. Our year-to-date operating cash flow at the end of the third quarter improved over $40 million compared to the prior year, and our debt levels declined by $16.5 million or 23.9% year over year.”

Mr. Miller concluded, “We are encouraged that the positive sales trends have continued into the fourth quarter and are excited about our holiday product assortment and marketing plans. We remain focused on continuing to drive the business by broadening our appeal to include consumers with more discretionary income while maintaining our strong value proposition, and further leveraging our merchandise and operating improvements.”

 

 We looked at other stocks in the sector so you can see what the comps are doing.

 

Dicks Sporting Goods (NYSE:DKS): Dicks is a much larger company and 2012 started the year around $33 p/s and have had a decent year trading at $51 p/s.  Dick’s Sporting Goods, Inc. operates as a sporting goods retailer in the United States. It offers specific apparel for sports, such as golf, tennis, running, fitness, soccer, baseball, football, lacrosse, hockey, swimming, and cycling; and basic sportswear, including T-shirts, shorts, sweat suits, and warm-up suits. The company also provides athletic shoes for running, walking, tennis, fitness and cross training, basketball, and hiking; casual footwear; a line of cleated shoes for baseball, football, soccer, and lacrosse; and boots, socks, and accessories.

Cabela’s (NYSE:CAB): Following the trend upward CAB started 2012 at $25 p/s and trades around $44 today as demand and cash flow continues in sporting goods.  The company had a recent sell off in shares but is up for the year.  Cabela’s Incorporated, together with its subsidiaries, operates as a specialty retailer and direct marketer of hunting, fishing, camping, and related outdoor merchandise. The company’s product portfolio includes merchandise and equipment for hunting, fishing, marine use, and camping, as well as casual and outdoor apparel and footwear, optics, vehicle accessories, and gifts and home furnishings. As of October 25, 2012, it operated 40 stores in the United States and Canada.

 

 Hibbett Sports (NASDAQ:HIBB):  Hibbett is up on the year also but had a similar selloff as consumer demand concerns hit them a bit harder than the others in the group.  Shares started the year at $44 and traded to $62 before pulling back to the current $55.  Hibbett Sports, Inc. operates sporting goods stores in small to mid-sized markets primarily in the southeast, southwest, Mid-Atlantic, and Midwest regions of the United States. Its stores offer an assortment of merchandise, including athletic footwear, team sports equipment, athletic and fashion apparel, and related accessories.

 

Disclaimer:  We have no position in any stock mentioned here

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