Dick's Sporting Goods exceeds earnings expectations

19 May '11

4 min read

Dick's Sporting Goods Inc reported sales and earnings results for the first quarter ended April 30, 2011.

First Quarter Results

The Company reported consolidated net income for the first quarter ended April 30, 2011 of $37.5 million, or $0.30 per diluted share, exceeding the Company's earnings expectations provided on March 8, 2011 of $0.26 - 0.28 per diluted share. For the first quarter ended May 1, 2010, the Company reported consolidated net income of $26.2 million, or $0.22 per diluted share.

Net sales for the first quarter of 2011 increased by 6.3% to $1.1 billion due primarily to a 2.1% increase in consolidated same store sales and the opening of new stores. The 2.1% consolidated same store sales increase consisted of a 1.4% increase at Dick's Sporting Goods stores, a 3.3% increase at Golf Galaxy and a 25.2% increase in its e-commerce business.

"In the first quarter, we demonstrated our ability to effectively run our business and generate better than expected earnings, despite unfavorable weather conditions in many of our markets," said Edward W. Stack, Chairman and CEO. "With several multi-year growth opportunities, a strong balance sheet, and a talented team of associates, we are optimistic about the near and long-term prospects of our business."

New Stores

In the first quarter, the Company opened three Dick's Sporting Goods stores.

As of April 30, 2011, the Company operated 447 Dick's Sporting Goods stores in 42 states, with approximately 24.7 million square feet and 81 Golf Galaxy stores in 30 states, with approximately 1.3 million square feet.

Balance Sheet

The Company ended the first quarter of 2011 with $533 million in cash and cash equivalents and did not have any outstanding borrowings under its $440 million Credit Agreement. At the end of the first quarter of 2010, the Company had $207 million in cash and cash equivalents and did not have any outstanding borrowings under its credit facility.

The inventory per square foot was 0.6% higher at the end of the first quarter 2011 as compared to the end of the first quarter of 2010.

Current 2011 Outlook

The Company's current outlook for 2011 is based on current expectations and includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 as described later in this release. Although the Company believes that the expectations and other comments reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations or comments will prove to be correct.

Full Year 2011

• Based on an estimated 126 million diluted shares outstanding, the Company currently anticipates reporting consolidated earnings per diluted share of approximately $1.91 - 1.93. For the full year 2010, the Company reported consolidated non-GAAP earnings per diluted share of $1.63, excluding Golf Galaxy store closing costs and litigation settlement costs. On a GAAP basis, the Company reported consolidated earnings per diluted share of $1.50 in 2010.

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