Big 5 Posts 52% Jump in Profit

Big 5 Sporting Goods Corp.’s earnings jumped 52% in the second quarter, the company said Wednesday, as stronger sales of apparel and outdoor goods helped offset the dampening effects of poor weather.

The El Segundo-based retailer, which went public in June 2002, said net income climbed to $6.3 million, or 28 cents a share, from $4.1 million, or 13 cents a share, a year earlier.

After adjusting the year- earlier quarter’s results for one-time events related to the initial public offering, the latest quarter’s net income was up only 3.4% from an adjusted profit of $6.1 million, or 27 cents a share, in the 2002 quarter.

Sales increased 4.6% to $170.1 million. Same-store sales increased 0.9%.

The earnings, which were released after the stock market’s close, were below the consensus analyst estimate of 30 cents a share.

Shares of Big 5 rose 45 cents to $15.45 on Wednesday on Nasdaq.

Analysts seemed pleased with the performance of the 275-store chain, especially given the weaker performance in the quarter by several of its competitors including La Canada Flintridge-based Sport Chalet Inc.

“I think it was a good performance in a tough environment,� said Ian Corydon of B. Riley & Co. of Los Angeles. He rates the stock a “buy.�

“Big 5 has been a consistently good performer in the sporting goods industry,� Corydon said. Neither he nor his company owns shares in Big 5. Riley does not have an investment banking relationship with Big 5.

Big 5 executives said wet, chilly weather in the spring led to a weaker-than-expected performance. Also, sales were sluggish in California, Oregon and Washington, which still are struggling through a weak economy.

However, warming weather brought stronger sales in June of apparel and team sporting goods, Big 5 said, adding that same-store sales should show “low single digit� percentage sales increases in the third and fourth quarters.

Management also reaffirmed its earnings forecast for the entire year of $1.18 to $1.23 a share.