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Dick's anticipates generating profitable growth in 2010
03 Feb '10
3 min read
Dick's Sporting Goods, Inc. increased its expectations for the fourth quarter and full year 2009 due to better than anticipated quarter-to-date performance.
Fourth Quarter Results
Based on an estimated 120 million diluted shares outstanding, the Company now anticipates reporting consolidated earnings per diluted share of at least $0.54 compared to the previous estimate of $0.41 to 0.46 provided on November 19, 2009. In the fourth quarter of 2008, the Company reported non-GAAP consolidated earnings per diluted share of $0.54. On a GAAP basis for the fourth quarter of 2008, the Company reported a loss of $0.94 per diluted share, which included a non-cash impairment charge and merger and integration costs.
Comparable store sales for the fourth quarter of 2009 are now expected to increase approximately 2% as compared to the previously expected decline of 6 to 4% provided on November 19, 2009. Comparable store sales declined 8.6% in the fourth quarter of 2008. The comparable store sales calculation for the fourth quarter in 2008 and 2009 includes Dick's Sporting Goods stores and Golf Galaxy stores. It excludes Chick's Sporting Goods stores converted to Dick's Sporting Goods stores.
Full Year 2009
Based on an estimated 118 million diluted shares outstanding, the Company now anticipates reporting consolidated earnings per diluted share of at least $1.17, excluding merger and integration costs as compared to expectations provided on November 19, 2009 of $1.04 - 1.09, excluding merger and integration costs. For the full year 2008, the Company reported consolidated earnings per diluted share of $1.15, excluding a non-cash impairment charge and merger and integration costs.
On a GAAP basis, the Company is now anticipating reporting consolidated earnings per diluted share of at least $1.12 in 2009 as compared to previous expectations of approximately $0.99 - 1.04 earnings per diluted share provided on November 19, 2009. In 2008, the Company reported a net loss of $0.36 per diluted share on a GAAP basis.
Comparable store sales are currently expected to decrease approximately 2% compared to the Company's previous expectation of a decline of approximately 4 to 3%. In 2008, comparable store sales declined 4.8%. The comparable store sales calculation for the full year 2009 includes Dick's Sporting Goods stores and Golf Galaxy stores. The comparable store sales calculation for the full year 2008 includes Dick's Sporting Goods stores only.
"At the time of our third quarter earnings announcement, same store sales had been running at a negative double-digit pace since mid-October. Beginning in the final week of November, however, we saw an improvement in same store sales, which continued and strengthened through the holidays," said Edward W. Stack, Chairman and CEO. "The better than expected comparable sales were seen across all major categories."
In 2010, the Company currently anticipates generating profitable growth with earnings per share greater than current 2009 expectations. In accordance with standard practice, the fourth quarter and full year 2009 results along with additional detail regarding 2010 expectations will be provided in March 2010.
Fourth Quarter Results
Based on an estimated 120 million diluted shares outstanding, the Company now anticipates reporting consolidated earnings per diluted share of at least $0.54 compared to the previous estimate of $0.41 to 0.46 provided on November 19, 2009. In the fourth quarter of 2008, the Company reported non-GAAP consolidated earnings per diluted share of $0.54. On a GAAP basis for the fourth quarter of 2008, the Company reported a loss of $0.94 per diluted share, which included a non-cash impairment charge and merger and integration costs.
Comparable store sales for the fourth quarter of 2009 are now expected to increase approximately 2% as compared to the previously expected decline of 6 to 4% provided on November 19, 2009. Comparable store sales declined 8.6% in the fourth quarter of 2008. The comparable store sales calculation for the fourth quarter in 2008 and 2009 includes Dick's Sporting Goods stores and Golf Galaxy stores. It excludes Chick's Sporting Goods stores converted to Dick's Sporting Goods stores.
Full Year 2009
Based on an estimated 118 million diluted shares outstanding, the Company now anticipates reporting consolidated earnings per diluted share of at least $1.17, excluding merger and integration costs as compared to expectations provided on November 19, 2009 of $1.04 - 1.09, excluding merger and integration costs. For the full year 2008, the Company reported consolidated earnings per diluted share of $1.15, excluding a non-cash impairment charge and merger and integration costs.
On a GAAP basis, the Company is now anticipating reporting consolidated earnings per diluted share of at least $1.12 in 2009 as compared to previous expectations of approximately $0.99 - 1.04 earnings per diluted share provided on November 19, 2009. In 2008, the Company reported a net loss of $0.36 per diluted share on a GAAP basis.
Comparable store sales are currently expected to decrease approximately 2% compared to the Company's previous expectation of a decline of approximately 4 to 3%. In 2008, comparable store sales declined 4.8%. The comparable store sales calculation for the full year 2009 includes Dick's Sporting Goods stores and Golf Galaxy stores. The comparable store sales calculation for the full year 2008 includes Dick's Sporting Goods stores only.
"At the time of our third quarter earnings announcement, same store sales had been running at a negative double-digit pace since mid-October. Beginning in the final week of November, however, we saw an improvement in same store sales, which continued and strengthened through the holidays," said Edward W. Stack, Chairman and CEO. "The better than expected comparable sales were seen across all major categories."
In 2010, the Company currently anticipates generating profitable growth with earnings per share greater than current 2009 expectations. In accordance with standard practice, the fourth quarter and full year 2009 results along with additional detail regarding 2010 expectations will be provided in March 2010.
Dick's Sporting Goods Inc
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