Dick’s Sporting Goods Q3 same-store sales up 5.2 percent

Dick’s Sporting Goods’ Net sales for the third quarter increased 10.2 percent to approximately 1.8 billion dollars and consolidated same store sales increased 5.2 percent compared to the company's guidance of an approximate 2 to 3 percent increase. Same store sales for Dick’s Sporting Goods increased 5.5 percent, while Golf Galaxy decreased 3.3 percent.

"We are very pleased with our third quarter results, which were driven by a 5.2 percent comp sales increase and gross margin expansion. We realized meaningful market share gains and saw growth across each of our three primary categories of hardlines, apparel and footwear, while maintaining tight control of our inventory," said Edward W. Stack, Chairman and CEO in the company statement.

Reports rise in Q3 net income to 48.9 mn dollars

Consolidated net income for the third quarter ended October 29, 2016 was 48.9 million dollars or 0.44 dollar per diluted share against 47.2 million dollars or 0.41 dollars per diluted share, in the same quarter last year. On a non-GAAP basis, net income was 53.6 million dollars or 0.48 dollar compared to the company's expectations provided on August 16, 2016 of 0.39 dollar to 0.42 dollar. Consolidated non-GAAP net income was 51.9 million dollars or 0.45 dollar.

In the third quarter, the company opened 27 new Dick’s Sporting Goods stores, seven new Field & Stream stores, and two new Golf Galaxy stores and relocated four Dick’s Sporting Goods stores. Additionally, the company closed one Field & Stream store. As of October 29, 2016, the company operated 676 Dick’s Sporting Goods stores in 47 states, 74 Golf Galaxy stores in 29 states and 27 Field & Stream stores in 13 states.

Highlights of the 39 weeks performance

The company reported consolidated net income for the 39 weeks ended October 29, 2016 of 197.2 million dollars or 1.75 dollars per diluted share against 201.4 million dollars or 1.71 dollars per diluted share for the same period last year. On a non-GAAP basis, net income was 201.9 million dollars or 1.80 dollars per diluted share, while consolidated non-GAAP net income was 206.1 million dollars or 1.75 dollars per diluted share.

Net sales increased 8.1 percent from last year's period to approximately 5.4 billion dollars, reflecting the growth of company’s store network and a 2.9 percent increase in consolidated same store sales.

Current fourth quarter and 2016 outlook

For the full year, the company currently anticipates reporting earnings per diluted share in the range of 2.91 dollars to 3.03 dollars. On a non-GAAP basis, the company currently anticipates reporting earnings per diluted share in the range of 2.99 dollars to 3.11 dollars, excluding costs the company expects to incur to convert former TSA and Golfsmith stores. Consolidated same store sales are currently expected to increase approximately 3 to 4 percent, compared to a 0.2 percent decrease in fiscal 2015.

The company expects to open 38 new Dick’s Sporting Goods stores and relocate nine Dick’s Sporting Goods stores in 2016. The company also expects to open nine new Field & Stream stores and two new Golf Galaxy stores in 2016, largely adjacent to new or relocated Dick’s Sporting Goods stores. The company is currently operating 30 Golfsmith stores, with plans to retain and convert these stores to the Golf Galaxy brand by the end of the fourth quarter.

For the fourth quarter, the company currently anticipates reporting earnings per diluted share in the range of 1.15 dollars to 1.27 dollars and 1.19 dollars to 1.31 dollars on non-GAAP basis. Consolidated same store sales are currently expected to increase approximately 3 to 6 percent in the fourth quarter of 2016, as compared to a 2.5 percent decrease in the fourth quarter of 2015. The company expects to re-open three former TSA stores as new Dick’s Sporting Goods stores in the fourth quarter of 2016. The company is currently operating 30 Golfsmith stores, with plans to retain and convert these stores to the Golf Galaxy brand by the end of the fourth quarter.

Picture:Facebook/Dick's Sporting Goods