Dick’s Sporting Goods Q3 net sales rise 7.6 percent

Dick’s Sporting Goods reporting sales and earnings for the third quarter ended October 31, 2015 said that its consolidated net income was 47.2 million dollars, or 0.41 dollar per diluted share. The Company reported consolidated net income for the third quarter ended November 1, 2014 of 49.2 million dollars, or 0.41 dollar per diluted share. Net sales increased 7.6 percent to approximately 1.6 billion dollars.

“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.

Third quarter highlights and retail expansion

Consolidated same store sales increased 0.4 percent, compared to the company's guidance of an increase of 1 to 3 percent. Same store sales for Dick’s Sporting Goods increased 0.7 percent, while Golf Galaxy decreased 2.9 percent. Third quarter 2014 consolidated same store sales increased 1.1 percent.

Ecommerce penetration was 8 percent of total net sales, compared to 7.3 percent during the third quarter of 2014. In the third quarter, the company opened 27 new Dick’s Sporting Goods stores and seven new Field & Stream stores. The company also relocated five Dick’s Sporting Goods stores and remodeled two stores and closed one. As of October 31, 2015, the company operated 645 Dick’s Sporting Goods stores in 47 states, 75 Golf Galaxy stores in 29 states, and 19 Field & Stream stores in nine states.

In the beginning of the fourth quarter, the company opened one new Dick’s Sporting Goods store and relocated one store, completing its 2015 store development program. During fiscal 2015, the company opened a total of 44 new Dick’s Sporting Goods stores and nine new Field & Stream stores. The company also relocated seven Dick’s Sporting Goods stores and one Golf Galaxy store and remodeled two Dick’s Sporting Goods stores. Additionally, the company closed one Dick’s Sporting Goods store and three Golf Galaxy stores.

Year-to-date result highlights

The company reported consolidated net income for the 39 weeks ended October 31, 2015 of 201.4 million dollars, or 1.71 dollars per diluted share. For the 39 weeks ended November 1, 2014, the company reported consolidated net income of 188.7 million dollars, or 1.55 dollars per diluted share. Net sales for the 39 weeks increased 8.1 percent from last year's period to approximately 5 billion dollars, reflecting the opening of new stores and a 0.9 percent increase in consolidated same store sales.

Current outlook for Q4 and FY15

Based on an estimated 117 million diluted shares outstanding, the company currently anticipates reporting consolidated non-GAAP earnings per diluted share in the range of 2.85 dollars to 3 dollars, excluding a litigation settlement charge. For the 52 weeks ended January 31, 2015, the Company reported consolidated earnings per diluted share of 2.84 dollars. Consolidated same store sales are currently expected to be approximately flat to an increase of 1 percent, compared to a 2.4 percent increase in fiscal 2014.

The company currently anticipates reporting consolidated earnings per diluted share in the range of 1.10 dollars to 1.25 dollars in the fourth quarter of 2015, compared to consolidated earnings per diluted share of 1.30 dollars in the fourth quarter of 2014. Consolidated same store sales are currently expected to be in the range of negative 2 percent to positive 1 percent as compared to a 3.4 percent increase in the fourth quarter of 2014.