Dick's gets clubbed by Golf Galaxy

Lackluster traffic at its Golf Galaxy stores led Dick’s Sporting Goods to report a lackluster profit in the first quarter.

Despite the company’s efforts to turn around its Golf Galaxy division, it posted an 11% drop in same-store sales for the quarter. For the first quarter ended May 2, the company reported a 10% decline in net profit to $63.3 million, or 53 cents per share. In the year-ago quarter, the company earned $70 million, or 57 cents per share. Net sales rose 8.8% to $1.6 billion, while sales at stores open at least a year -- or same-store sales -- were up 1%. Same-store sales at the company’s namesake stores rose 1.8%.

"We are pleased with our first quarter results as we generated earnings at the high end of our expectations, despite a slow start to the spring season," said Edward W. Stack, chairman and CEO. "I am confident in our full year outlook as we remain focused on growing our business through driving store productivity, adding new stores in new and underpenetrated markets, expanding and controlling our e-commerce business, and further developing our Field & Stream specialty concept."

Looking ahead, Dick’s expects to report consolidated earnings per share in the range of $3.12 to $3.20 for the full fiscal year.

In the first quarter, the company opened nine new Dick’s Sporting Goods stores and one new Field & Stream store. The company also relocated one Dick’s Sporting Goods store and one Golf Galaxy store. As of May 2, the company operated 612 Dick’s Sporting Goods stores in 46 states, with approximately 32.7 million square feet, 78 Golf Galaxy stores in 29 states, with approximately 1.4 million square feet and eleven Field & Stream stores in six states, with approximately 0.6 million square feet.