Joseph Kinnison, CFA
CFA, special situations

Big 5 Sporting Goods Sales Per Square Foot Is The Path To Recovery

Big 5 Sporting Goods (NASDAQ:BGFV) operates a chain of 425 retail stores, most of them located in the Western US market. The stock corrected this following an earnings miss, providing an opportunity to buy a sporting goods retailer with positive store metrics relative to its comp group.

Big 5's average store size is 11,000 square feet, putting its stores in the middle of the industry range. Hibbett Sports (NASDAQ:HIBB) has 5,000 square foot stores, generally located in strip malls near a Wal-Mart store. Dick's Sporting Goods (NYSE:DKS) has 50,000 square foot stores predominantly in mall anchor locations. Big 5 identifies Cabela's (NYSE:CAB) and Foot Locker (NYSE:FL) as competitors as well,...

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