Big 5 Sporting Goods Industry

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The sporting goods industry is one that covers a wide variety of activities; from individual activities like fitness or hiking, to team sports like football or baseball. There are many areas in which companies can compete. A company can compete in one area and create a niche or compete in many areas by doing many things well. Two companies that cover a wide range of activities are Big 5 Sporting Goods and Dick’s Sporting Goods. Intepreting both companies financial statements and financial ratios through comparing and contrasting will provide the opportunity to analyze how their respective businesses perform in the sporting goods industry.
Background
Big 5 Sporting Goods was founded in 1955 while operating five stores in Burbank, Glendale, Inglewood, Los Angeles, and San Jose California. Originally, Big 5 focused on WWII Army surplus and later transitioned to sporting goods as a result of the active life styles of their customers. In 1971, Big 5 was acquired by Thrifty Drug Stores and later by a private equity firm, Leonard Green & Partners in 1992. After this acquisition, Big 5 continued to grow and expanded into other states like Arizona, Idaho, New Mexico, Oregon, and Texas. Expansion progressed and in 2002 Big 5 had an initial public offering to raise $100 million to invest in future growth (Big 5 Sporting Goods, History). This growth in a little over 50 years has resulted in over 400 locations in 12 states in the west while offering name brands (Big 5 Sporting Goods,
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