Dick’s Sporting Goods says third quarter slower than expected

PITTSBURGH — Dick’s Sporting Goods reported Tuesday that the third quarter wasn’t as strong as the company and analysts had hoped, and the Pittsburgh-area retailer said it expects the holiday quarter to be very competitive as retailers offer promotions to lure customers.

Dick’s reported net income of $47.2 million, or 41 cents per share, compared to $49.2 million, or 41 cents per share, during the year-ago quarter.

Excluding a one-time charge related to a legal settlement, net income was $51.9 million, or 45 cents per share. That came in on the lower end of company guidance issued in August and missed analysts’ estimates for the quarter by 2 cents.

Sales for the three months ended Oct. 31 rose 7.6 percent to $1.6 billion, but sales at stores open at least a year — known as same store sales — rose only 0.4 percent, below the company’s projections of an increase in the 1 percent to 3 percent range.

“Our positive same store sales for the quarter reflected a strong back-to-school selling season tempered by slowing trends later in the quarter. Strength in athletic footwear, accessories and athletic apparel was moderated by the impact of record warm weather in more seasonal categories,” said Edward W. Stack, chairman and CEO, in this morning’s announcement.

Online sales in the third quarter accounted for 8 percent of total sales, up from 7.3 percent last year.

Despite the growth in online shopping, Dick’s has continued to expand its reach through bricks-and-mortar stores. In the third quarter, the company opened 27 new Dick’s stores and 7 Field & Stream locations. It closed one Dick’s store, leaving it with 645 in 47 states as of Oct. 31. At that date, Dick’s also had 75 Golf Galaxy stores in 29 states and 19 Field & Stream stores in nine states.

In the fourth quarter, the company now expects earnings in the range of $1.10 to $1.25 per share. Analysts had been looking for $1.43 per share.

Sales at stores open at least a year are projected to be in the range of a 2 percent drop to a 1 percent gain.

(c)2015 Pittsburgh Post-Gazette

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