DICK'S Sporting Goods, Inc., the largest U.S.-based full-line sporting goods retailer, reported sales and earnings results for the second quarter ended August 3, 2013.
Second Quarter Results
The Company reported consolidated non-GAAP net income for the second quarter ended August 3, 2013 of $88.9 million, or $0.71 per diluted share, excluding an asset impairment charge, compared to the Company's expectations provided on May 21, 2013 of $0.75 to 0.77 per diluted share.
For the second quarter ended July 28, 2012, the Company reported consolidated non-GAAP net income of $81.3 million, or $0.65 per diluted share, excluding an impairment charge related to the Company's investment in JJB Sports.
On a GAAP basis, the Company reported consolidated net income for the second quarter ended August 3, 2013 of $84.2 million, or $0.67 per diluted share. For the second quarter ended July 28, 2012, the Company reported consolidated net income of $53.7 million, or $0.43 per diluted share.
Net sales for the second quarter of 2013 increased 6.6% to $1.5 billion. Adjusted for the shifted calendar due to the 53rd week in 2012, consolidated same store sales decreased 0.4%, compared to the Company's guidance of an approximate 2 to 3% increase. Second quarter 2012 consolidated same store sales increased 3.8%. Shifted same store sales in the second quarter of 2013 for DICK'S Sporting Goods increased 0.1% while Golf Galaxy decreased 6.1%.
Unshifted consolidated same store sales increased 1.2%, compared to the Company's guidance of an approximate 3.5 to 4.5% increase. Unshifted same store sales in the second quarter of 2013 for DICK'S Sporting Goods increased 1.9% while Golf Galaxy decreased 7.2%. eCommerce penetration was 5.6% of total sales.
"Our second quarter results were below our guidance as a sluggish consumer environment along with higher levels of precipitation and cooler temperatures contributed to a decrease in traffic, resulting in lower than expected same store sales," said Edward W. Stack, Chairman and CEO. "Despite these challenges in the second quarter, we were able to generate record non-GAAP earnings per share."
Mr. Stack continued, "We are revising our full year guidance to a range of $2.60 to $2.65 per share, primarily due to lower sales expectations for the second half of the year, which are a result of our belief that consumers will remain relatively cautious. In order to drive traffic and respond to the consumer environment we are increasing our advertising levels, enhancing the customer experience, and investing in growth categories."
Mr. Stack concluded, "The current challenges we are facing are short-term in nature and we are actively pursuing strategies to address them. This does not change our view of the profitable long-term growth opportunities for our business."
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