Big 5 Sporting Goods (NASDAQ: BGFV) reported Q2 EPS of $0.52, versus $0.00 reported last year. Revenue for the quarter came in at $227.94 million, versus $240.97 million reported last year.

• Net income for the second quarter of fiscal 2020 was $11.1 million, or $0.52 per diluted share, including a net benefit of approximately $0.13 per diluted share related to rent abatement savings and a recovery in eminent domain litigation, partially offset by the expense associated with the special employee recognition bonus awards previously announced. This compares to break-even net income for the second quarter of fiscal 2019 of $0.00 per diluted share, including a $0.03 per diluted share benefit for the termination of a software contract.

Third Quarter UpdateSame store sales for the Company’s fiscal July 2020 period increased 31.9% versus the prior year period. Merchandise margins continue to trend positively for the fiscal 2020 third quarter-to-date period compared to the prior year period, reflecting less promotional activity and shifts in the product mix.

The Company is benefiting in the third quarter from certain aspects of its expense reduction initiatives that were implemented in response to the uncertainties of COVID-19, including continued labor expense savings due to reduced store operating hours and advertising expense savings due to significantly reduced advertising activity. The Company expects these savings to contribute to significant operating leverage potential for the third quarter.

As of the end of its July 2020 fiscal period, the Company had zero revolving credit borrowings, while holding a cash position of approximately $38 million, reflecting a $57.7 million reduction in borrowings on a year-over-year basis and a $35.0 million reduction compared to the end of the fiscal 2020 second quarter. Inventory levels have decreased approximately 20% as of the end of its July 2020 fiscal period compared to the prior year.

For earnings history and earnings-related data on Big 5 Sporting Goods (BGFV) click here.