Dick's Sporting Goods reports profit up despite mild winter

March 6, 2012 9:57 am

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Dick's Sporting Goods showed resilience during a tough winter -- tough for those trying to sell cold-weather gear, anyway -- and produced a $111.1 million profit, up from $87.5 million in the same period a year ago.

The Findlay retailer this morning reported earnings per share of 88 cents vs. 71 cents a year ago. After the company issued a warning in January that the mild winter was pinching sales, those results met analysts' earnings expectations.

Total sales in the three months ended Jan. 28 rose 6.1 percent to $1.6 billion. Sales at stores open a least a year, otherwise known as same-store sales, were up 0.1 percent.

While the company's Golf Galaxy stores produced a 9 percent increase in same-store sales in the fourth quarter, its Dick's Sporting Goods stores saw a 2.5 percent drop.

For the full fiscal year, the company reported a profit of $263.9 million, or $2.10 per share, compared to $182.1 million, or $1.50 per share, a year earlier. Excluding an investment gain and some one-time events, the company earned $2.02 per share, meeting the expectations of analysts polled by Thomson Financial.

Sales rose 7 percent to $5.2 billion, driven by the opening of new stores and a 2 percent gain in sales at established stores.

As of January, the company had 480 stores and 81 Golf Galaxy stores.

In February, the company's board approved a quarterly dividend of $0.125 per share, the first to be paid by the retailer.

Looking ahead to the next fiscal year, Dick's is projecting earnings per share in a range of $2.38 and $2.41.

Same-store sales are expected to increase 2 percent to 3 percent, and Dick's plans to open about 40 new stores this year.

Teresa F. Lindeman: tlindeman@post-gazette.com or 412-263-2018.
First Published 2012-03-06 08:23:11

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