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Big 5 Sporting Goods' stock doubles in active trade after upbeat earnings update

MarketWatch logo MarketWatch 7/9/2020 Tomi Kilgore
MARKET PULSE

Shares of Big 5 Sporting Goods Corp. (bgfv) more than doubled in active trading Thursday (up 104%), to pace all the premarket gainers, after the sporting goods retailer released upbeat preliminary results for the fiscal second quarter. Trading volume swelled to over 4.2 million shares, compared with the full-day average of about 831,000 shares. The company said it expects earnings per share of 52 cents to 54 cents for the quarter, including a benefit of 15 cents related to rent abatements and litigation recovery, compared with breakeven EPS a year ago. There are no analyst estimates recorded by FactSet. Total sales are expected to be down 5.4% to $228 million and same-stores sales fell 4.2%. Same-store sales were down 28.2% for the first half of the quarter, as the COVID-19 pandemic resulted in a "highly reduced" store count, but that improved to an increase of 15.5% in the second half of the quarter as stores started reopening, with "very strong merchandise margins." The company said all 431 of its stores are currently operating, compared with 434 stores at the same time last year. The stock has tumbled 36.0% year to date through Wednesday, while the SPDR S&P Retail ETF (xrt) has slipped 3.7% and the S&P 500 (spx) has eased 1.9%.

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