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B5

BIG 5 SPORTING GOODS Corp (BGFV)·Q4 2025 Earnings Summary

Executive Summary

  • The company did not issue a public Q4 2025 earnings release or hold an earnings call after completing its go‑private transaction on October 2, 2025 and filing Form 15 to terminate SEC registration on October 14, 2025; therefore, no Q4 2025 revenue/EPS/margins are available .
  • Prior quarters show persistent demand weakness and margin pressure: same‑store sales fell 7.8% in Q1 2025 and 6.1% in Q2 2025; gross margin compressed to 28.2% in Q2 (from 30.9% in Q1) and was 28.2% in Q4 2024 .
  • Go‑private terms: $1.45 per share in cash (~36% premium to 60‑day VWAP) with ~$112.7M enterprise value inclusive of $71.4M credit line borrowings; Big 5 remains an independent company within Capitol Hill Group’s portfolio, supported by Worldwide Golf’s retail expertise .
  • Key operational signals into privatization: rising borrowings ($71.4M by Q2), legal/transaction costs ($2.8M in Q2), and accelerated store closures (15 planned in 2025; eight closed in Q1), all reflecting defensive positioning amid macro headwinds .

What Went Well and What Went Wrong

What Went Well

  • Management mitigated near‑term tariff impacts by accelerating receipts: “We brought in extra product in advance of the tariffs, which should minimize any tariff impacts in the near term” .
  • Sequential demand improved late in Q1: “March same‑store sales were flat versus the prior year,” a sharp improvement from double‑digit declines earlier in the quarter .
  • Inventory repositioning for seasonal sell‑through and flexibility: inventory up 6.5% YoY in Q1 due to earlier receipts to capture spring/summer demand; normalized levels targeted by year‑end .

What Went Wrong

  • Top‑line and category weakness persisted: Q1 2025 SSS down 7.8% (footwear −11.8%, apparel −8.7%) and Q2 2025 SSS down 6.1% .
  • Margin compression and expense deleverage: Q2 gross margin 28.2% vs 29.4% prior year, S&A 40.8% of sales (up ~470 bps YoY), including $2.8M merger expenses and $1.3M store impairments .
  • Liquidity/utilization worsened: borrowings rose to $71.4M by Q2 with cash at $4.9M; net losses widened to $(24.5)M in Q2 and $(20.9)M in Q4 2024 .

Financial Results

Note: No Q4 2025 figures were publicly reported post‑privatization; Q4 2024, Q1 2025, and Q2 2025 are last available.

MetricQ4 2024Q1 2025Q2 2025Q4 2025
Revenue ($USD Millions)$181.619 $175.647 $184.894 N/A – Company private; no release
Basic EPS ($)$(0.95) $(0.78) $(1.11) N/A – Company private; no release
Gross Profit Margin %28.2% 30.9% 28.2% N/A – Company private; no release
Adjusted EBITDA ($USD Millions)$(16.424) $(12.004) $(14.723) N/A – Company private; no release
Same‑Store Sales (% YoY)−6.1% −7.8% −6.1% N/A – Company private; no release

KPIs and Category Trends

KPI/Category (SSS YoY)Q4 2024Q1 2025
Apparel−1.3% −8.7%
Footwear−5.4% −11.8%
Hard Goods−8.7% −4.7%
Transactions−3.8% −5.3%
Average Sale−2.3% −2.5%

Balance Sheet/Liquidity Snapshot (last available)

  • Borrowings: $71.4M at Q2 2025; cash: $4.9M .
  • Inventories: ~flat YoY at Q2; +6.5% YoY at Q1 due to timing .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Same‑Store Sales (YoY)Q1 2025Mid‑ to high single‑digit decline Reported: −7.8% N/A (reported actuals)
Net Loss per Basic ShareQ1 2025$(0.75) to $(0.85) Reported: $(0.78) Maintained (in range)
Same‑Store Sales (YoY)Q2 2025N/ALow‑ to mid‑single‑digit decline New
Net Loss per Basic ShareQ2 2025N/A$(0.75) to $(0.90) (no tax benefit) New
DividendsFY 2025N/ANo guidance mentioned N/A

Earnings Call Themes & Trends

TopicPrevious Mentions (Q‑2: Q4 2024)Previous Mentions (Q‑1: Q1 2025)Current Period (Q4 2025)Trend
Macroeconomic demand pressurePersistent headwinds; SSS −6.1% Customer base challenged; SSS −7.8% No public call post‑privatization Ongoing pressure
Weather impactUnfavorable winter weather; southern tier drought‑like conditions Winter sales down ~25% early; March flat YoY No public call post‑privatization Volatile; regionally bifurcated
Tariffs/supply chainNot highlightedAdvanced receipts to mitigate tariff impact No public call post‑privatization Proactive mitigation
Store portfolio optimizationPlan to close 15 stores in 2025 8 closures in Q1; ~7 more planned No public call post‑privatization Continuing footprint rationalization
Inventory strategyYear‑end inventory −5.6% YoY Inventory +6.5% YoY; earlier spring/summer receipts No public call post‑privatization Repositioning timing/levels
Liquidity/creditCredit facility amended/extended (Dec 2029 maturity) Borrowings $30.9M, cash $3.9M Borrowings $71.4M, cash $4.9M Higher utilization into Q2

Management Commentary

  • “March same‑store sales were flat versus the prior year... This performance in March marked a significant improvement from the double‑digit declines we experienced earlier in the quarter.” – Steven G. Miller, Q1 2025 call .
  • “We brought in extra product in advance of the tariffs, which should minimize any tariff impacts in the near term... we will remain nimble and evolve as needed by adjusting our purchasing.” – Steven G. Miller, Q1 2025 call .
  • “Our second quarter results continue to reflect the challenging macroeconomic and geopolitical environment affecting consumer discretionary spending.” – Steven G. Miller, Q2 2025 release .
  • “This transaction marks an exciting new chapter for Big 5... while maximizing value for our stockholders.” – Steven G. Miller, merger announcement .

Q&A Highlights

  • Q4 2025: No call held post‑privatization, so no Q&A content is available .
  • Prior calls: Prepared remarks available (Q4 2024, Q1 2025), but detailed Q&A sections were not accessible in retrieved transcripts; operational focus centered on margins, inventory timing, and store optimization .

Estimates Context

  • Wall Street consensus estimates from S&P Global for Q4 2025 were unavailable due to the company’s privatization and inability to retrieve SPGI data at this time. Estimates comparisons cannot be provided.
  • If future consensus data are required, they would be sourced from S&P Global; current retrieval attempts returned errors (SPGI daily limit exceeded).

Key Takeaways for Investors

  • No public Q4 2025 results or call occurred following the October 2, 2025 closing of the go‑private transaction and October 14 Form 15 deregistration; the company is no longer filing with the SEC .
  • The take‑private priced at $1.45 per share (~36% premium to 60‑day VWAP) with ~$112.7M enterprise value inclusive of $71.4M borrowings; strategic sponsorship from Capitol Hill Group and Worldwide Golf emphasizes retail expertise and capital support .
  • Demand remained weak into 2025: SSS −7.8% in Q1 and −6.1% in Q2; merchandise margins compressed, and gross margin fell to 28.2% in Q2 vs 30.9% in Q1, highlighting pricing pressure and occupancy/distribution deleverage .
  • Expenses deleveraged: Q2 S&A reached 40.8% of sales, including $2.8M merger costs and $1.3M impairments, reinforcing the need for footprint rationalization (15 closures planned in 2025; 8 executed in Q1) .
  • Liquidity reliance increased: borrowings rose to $71.4M with cash ~$4.9M by Q2; continued credit facility access (amended in Dec 2024, maturity Dec 2029) provided flexibility amid macro uncertainty .
  • Inventory strategy was tactical: earlier seasonal receipts to mitigate tariffs and position for spring/summer demand; inventory +6.5% YoY in Q1, expected to normalize by year‑end .
  • Near‑term trading implications are moot post‑close, but operational themes (margin discipline, store optimization, inventory timing) and sponsor support frame the medium‑term private‑company thesis under new ownership .

Sources: Q4 2024 press release and call ; Q1 2025 press release and call ; Q2 2025 press release ; Merger announcement ; Form 15 deregistration and merger closing .