BIG 5 SPORTING GOODS Corp (BGFV)·Q1 2026 Earnings Summary

Executive Summary

• No public 8‑K 2.02 or earnings call exists for Q1 2026; Big 5 completed its go‑private transaction in October 2025, and ceased public reporting thereafter, making Q1 2026 results and consensus estimates unavailable .
• The most recent available quarters show continued top‑line pressure and margin compression: Q1 2025 net sales $175.6M (-9.2% YoY), gross margin 30.9% (-30 bps YoY), EPS -$0.78; Q2 2025 net sales $184.9M (-7.5% YoY), gross margin 28.2%, EPS -$1.11 .
• Management attributed softness to unfavorable weather, macro headwinds, promotional mix, and higher occupancy and distribution costs; they front‑loaded seasonal inventory to mitigate tariff risk and accelerated store closures (8 closed in Q1 2025; ~7 more planned for 2025) .
• Liquidity tightened through 2025: borrowings rose from $13.8M (Dec 2024) to $30.9M (Q1 2025) and $71.4M (Q2 2025); cash remained low ($3.9–$4.9M) .
• Near‑term stock reaction catalysts (pre‑privatization) were dominated by the merger process, with the deal priced at $1.45 per share and expected to close in H2 2025; the transaction subsequently closed in early Q4 2025 .

What Went Well and What Went Wrong

• What Went Well

  • Sequential improvement late in Q1 2025: March same‑store sales were flat despite a negative ~300 bps Easter calendar shift, marking a recovery from double‑digit declines earlier in the quarter .
  • Tariff mitigation: management pulled forward spring/summer receipts, reducing near‑term tariff impact and positioning inventory for summer demand .
  • Expense discipline: selling and administrative expense decreased $0.6M YoY in Q1 2025, with lower labor and reduced credit card fees, despite deleveraging on lower sales .

• What Went Wrong

  • Persistent macro and weather headwinds: winter‑related sales down nearly 25% in Q1 2025; southern markets were especially challenged .
  • Merchandise margins compressed: down 78 bps YoY in Q1 2025; Q2 2025 margins fell further amid lower merchandise margins and higher occupancy/distribution costs .
  • Mounting losses and leverage: Q2 2025 EPS -$1.11 including merger and impairment charges; borrowings escalated to $71.4M by Q2 2025 while cash stayed below $5M .

Financial Results

Segment/Category KPIs (where disclosed):

Balance Sheet/Liquidity KPIs:

Guidance Changes

Dividends: No dividend commentary disclosed in the reviewed materials .

Earnings Call Themes & Trends

Management Commentary

• “We were able to deliver a first quarter top and bottom line performance that was consistent with our expectations despite pressures from macroeconomic and weather-related headwinds. Net sales for the first quarter were $175.6 million... same-store sales down 7.8%.” — Steven G. Miller .
• “March same-store sales were flat versus the prior year, which included an approximate 300 bps benefit associated with the Easter calendar shift… This performance in March marked a significant improvement from the double-digit declines we experienced earlier in the quarter.” — Steven G. Miller .
• “Our merchandise margins decreased 78 basis points… reflecting product mix shifts along with promotional efforts to drive sales to value-conscious consumers.” — Steven G. Miller .
• “Net loss… was $17.3 million or $0.78 per basic share… EBITDA was negative $12 million… As of the end of our 2025 first quarter, we had $30.9 million of borrowings… cash balance of $3.9 million.” — Barry Emerson .
• “We brought in extra product in advance of the tariffs, which should minimize any tariff impacts in the near term… we will remain nimble… adjusting our purchasing.” — Steven G. Miller .

Q&A Highlights

• The reviewed Q1 2025 transcript materials primarily contained prepared remarks and did not include a detailed Q&A section; emphasis was on guidance, macro/weather commentary, inventory strategy, and store optimization .

Estimates Context

• Q1 2026 Wall Street consensus (S&P Global) for EPS and revenue is unavailable; the S&P Global tool returned no data for BGFV for Q1 2026, consistent with the company’s private status post‑merger completion. Values retrieved from S&P Global.*
• Prior periods (Q1/Q2 2025) did not disclose consensus comparisons in the company documents; management guided Q2 2025 net loss per share at $(0.75)–$(0.90), and actual GAAP EPS came in at $(1.11), reflecting merger expenses and impairment charges that widened losses versus the guidance range .

Key Takeaways for Investors

• With Q1 2026 unavailable and the company private, public comparables and consensus tracking are no longer applicable; any monitoring should focus on acquirer communications and post‑transaction operational updates .
• 2025 trendline showed pressured demand and margins: weather and macro discretionary softness, promotional mix, and higher occupancy/distribution costs consistently weighed on profitability .
• Liquidity tightened materially through mid‑2025 (borrowings scaled from $13.8M to $71.4M; cash sub‑$5M), underscoring balance sheet sensitivity in a weak sales environment .
• Operational tactics were pragmatic: front‑loading inventory to minimize tariff impact and accelerating store closures to optimize the footprint; these actions helped mitigate near‑term risk but did not offset macro headwinds .
• Q2 2025 EPS missed management’s guided loss range, driven by merger‑related charges and impairments; expect transaction‑related items to obscure underlying run‑rate until integration stabilizes post‑privatization .
• Narrative drivers that previously moved the stock shifted toward deal milestones (approval, closing), reducing the incremental impact of quarterly fundamentals on trading as the take‑private advanced .
• For medium‑term thesis considerations (private context), focus areas remain merchandising mix resilience, inventory turns into summer/fall seasons, occupancy expense leverage post store rationalizations, and tariff cost pass‑through dynamics; public disclosure will be limited post‑closing .