Client Big 5 Sporting Goods Credits Distribution Efficiencies in Third Quarter Financials

Fortna client Big 5 Sporting Goods, headquartered in El Segundo, CA, (Nasdaq: BGFV) recently reported their positive third quarter earnings and highlighted substantial savings in their new distribution center.

From their November 1 press release…”Gross profit for the fiscal 2007 third quarter increased to $82.0 million from $77.7 million in the third quarter of the prior year.  The Company’s gross profit margin increased to 35.5% in the fiscal 2007 third quarter from 34.8% in the third quarter of the prior year.  The gross margin improvement was driven by an increase of approximately 30 basis points in product margins and a $1.0 million decrease in distribution center costs resulting from operational efficiencies realized in the Company’s new distribution center.

“Our third quarter performance exceeded the upper end of our earnings guidance and demonstrated the strength of our business model,” said Steven G. Miller, the Company’s Chairman, President and Chief Executive Officer. “While we continued to face a challenging consumer environment throughout the quarter, with particular headwinds in certain of our markets, our team did a tremendous job of overcoming these challenges and producing solid gains in the bottom line. Our same store sales comped positively and we meaningfully increased product margins during the quarter, while realizing significant distribution center savings from improved operating efficiencies.