Big 5 Sporting Goods Corp. shares fell 7 percent in Tuesday trading, a day after the retailer said its third-quarter net income fell nearly 47 percent as fewer customers visited its stores and spent less.
El Segundo-based Big Five reported net income of $4.46 million (21 cents per share), compared with $8.38 million (37 cents) a year ago. Sales fell 3.5 percent to $223 million, and same-store sales fell 6.6 percent.
Big Five, which which operates 373 sporting goods stores in 11 western states, reported the earnings after Monday's market close.
Analysts surveyed by Thomson Reuters expected the company to earn 16 cents on revenue of $225 million.
Chief Executive Steven Miller said in a conference call that the holiday season will be challenging, since cash-strapped shoppers will be bargain hunting. He also said his stores face competition for consumer dollars from failed retailers such as Mervyn's and Linen 'n Things, that are in the midst of liquidation sales.
"We have to assume that consumer spending will remain soft through the holiday season," Miller said. "We've placed a tremendous focus on managing our inventories in this difficult environment and we continue to achieve good results."
Big 5 shares were down 40 cents, or 7 percent, to $5.63 in morning trading on the Nasdaq.
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