$BGFV Breaks Out, Further Gains Likely$BGFV has the shorts scrambling to cover after guiding higher.
Big 5 Sporting Goods (NASDAQ:BGFV) pops after saying it expects to report Q4 EPS ahead of the high end of its prior guidance range ($0.02 to $0.04 vs. -$0.16 to -$0.04 prior view).
The retailer also sees full-year EPS of $0.40 to $0.42.
Sales breakdown: Sales in the company's apparel category increased in the mid-single-digit range on the strength of demand for seasonal winter products, sales in its footwear category increased in the positive low-single-digit range, and sales in its hardgoods category decreased in the mid-single-digit range, largely due to softness in firearms-related products.
"Although our same store sales were slightly down for the quarter, our strategic decisions regarding pricing and promotions over the holiday period contributed to extraordinary expansion of merchandise margins, which drove a 4.7% increase in same store gross margin dollars," notes Big Five CEO Steven Miller on the EPS turnaround.
Miller says the company is also working hard to control expenses.
As always, use protective stops and trade with caution.
Good luck to all!
