…pressures are also impacting traffic trends and consumer confidence. As a result, we anticipate that our net loss per basic share will be in the range of $0.15 to $0.35 for the third quarter. We are focused on managing our expenses and inventory levels to mitigate the impact of these challenges and maintain our financial flexibility. Looking ahead, we continue to see opportunities in the marketplace to drive sales and improve our performance. We plan to open approximately three new stores and close about 11 stores by year-end, bringing our total store count to 422. We are also focused on capital expenditures, which are projected to be between $9 million and $14 million for fiscal 2024. These investments will support our growth initiatives and help us navigate the current economic landscape. In conclusion, we remain committed to delivering value to our customers and shareholders, even in the face of ongoing challenges. We are confident in our ability to adapt to changing market conditions and believe that our strategic focus on inventory alignment and operational discipline will position us for long-term success. Thank you for your continued support and interest in Big 5 Sporting Goods. We will now open the call for questions. Operator: Thank you. At this time, we will begin the question-and-answer session. If you have a question, please press *1 on your touchtone phone. Our first question comes from the line of [Analyst Name] with [Investment Firm]. Please proceed with your question. [Analyst Name]: Hi, thank you for taking my question. I wanted to ask about the impact of inflation on your business. Could you provide some insight into how rising costs are affecting your margins and pricing strategy? Steven Miller: Thank you for your question. Inflation has certainly been a challenge for us, as it has impacted our cost of goods sold and operating expenses. We have seen increases in key areas such as transportation, labor, and raw materials, which have put pressure on our margins. To mitigate these effects, we have implemented various strategies, including negotiating with suppliers for better pricing, optimizing our supply chain, and closely monitoring our expenses. In terms of pricing, we have been strategic in our approach, balancing the need to pass on some cost increases to customers while also maintaining our competitive position in the market. Overall, we believe that our focus on operational efficiency and cost control will help us navigate the current inflationary environment. [Analyst Name]: Thank you for that insight. It\’s helpful to understand how you are addressing these challenges. One more question, if I may. Could you provide some color on your plans for store expansion and closures? How do you determine which locations to open or close? Steven Miller: Absolutely. Our store expansion and closure decisions are based on a variety of factors, including market demographics, store performance, and overall strategic goals. When evaluating potential new locations, we look for areas with strong population growth, high income levels, and a lack of direct competition. We also consider factors such as store size, lease terms, and potential return on investment. On the other hand, when deciding to close a store, we evaluate its performance relative to our overall portfolio, as well as market conditions and lease expirations. Our goal is to optimize our store footprint to best serve our customers and drive profitability. We are constantly reviewing our store network to ensure that we are maximizing our potential in each market. [Analyst Name]: Thank you for that detailed explanation. It\’s clear that you are taking a thoughtful approach to store management. That concludes my questions. Thank you for the insights. Steven Miller: Thank you for your questions. We appreciate your interest in Big 5 Sporting Goods. Operator: Thank you. Our next question comes from the line of [Analyst Name] with [Investment Firm]. Please proceed with your question. [Analyst Name]: Hi, thanks for taking my question. I wanted to ask about your outlook for the back-to-school season and fall sports. How do you anticipate these seasonal trends will impact your business in the coming months? Steven Miller: Thank you for your question. The back-to-school season and fall sports are important periods for us, as they drive significant sales in categories such as apparel, footwear, and equipment. We are optimistic about the potential for these seasonal trends to boost our performance in the third quarter. Historically, we have seen strong demand for back-to-school essentials, including backpacks, athletic shoes, and activewear. Additionally, fall sports such as football, soccer, and volleyball typically generate increased traffic and sales in our stores. We are well positioned to capitalize on these opportunities, given our strong product assortment and competitive pricing. While we recognize that consumer spending may be impacted by macroeconomic challenges, we believe that our value proposition and seasonal offerings will resonate with customers. Overall, we are optimistic about the potential for the back-to-school and fall sports seasons to drive sales and contribute to our performance in the coming months. [Analyst Name]: Thank you for that perspective. It\’s helpful to understand how you are preparing for these seasonal trends. That concludes my questions. Thank you for the insights. Steven Miller: Thank you for your questions. We appreciate your interest in Big 5 Sporting Goods. Operator: Thank you. There are no further questions at this time. I will now turn the call back over to Mr. Miller for closing remarks. Steven Miller: Thank you, operator. In closing, I want to thank everyone for joining our call today. We are committed to executing our strategic initiatives and driving long-term value for our customers and shareholders. We remain focused on managing our business in a challenging environment and are confident in our ability to navigate these headwinds. We appreciate your continued support and look forward to updating you on our progress in the future. Thank you, and have a great day. Operator: Thank you for participating in today\’s conference call. You may now disconnect.
