Big 5 Sporting Goods Corp. on Tuesday said it expects third quarter earnings to be at the upper end of its previous guidance due to better merchandise margins and tighter management of expenses.

The El Segundo sporting goods retailer expects earnings of between 27 cents and 34 cents a share for the quarter ended Sept. 27. Analysts surveyed by Thomson Reuters on average expect the company to earn 31 cents per share.

Big 5 provided the update in advance of an investor conference this week. The company reported same-store sales rose 1.6 percent in the quarter at stores open for at least one year.

“Our positive sales, combined with continued tight expense management and merchandise margins that were slightly improved over the prior year, have positioned us well to significantly increase third quarter earnings per share compared to the same period last year,” Chief Executive Steven G. Miller said in a statement.

The company plans to report earnings in the first week of November.

Shares closed up 53 cents, or 3.5 percent, to $15.85 on the Nasdaq.