Dick's raises outlook after strong quarter

PITTSBURGH Dick's Sporting Goods today reported that net income for the third quarter increased 57% to $12.2 million and earnings per diluted share increased 43% to 10 cents, compared to prior year net income of $7.8 million, or 7 cents per diluted share, which was above the company's guidance for earnings per diluted share to range from 5 cents to 6 cents.

Net sales for the quarter increased 18% to $838.8 million due to the opening of new stores and the inclusion of Golf Galaxy in this years' quarterly results (which will be included in Dick's Sporting Goods comparable-store sales calculation beginning in the second quarter 2008), partially offset by a comparable-store sales decrease of 2.5%.

"Our performance this quarter demonstrates once again how our emphasis on execution, combined with the strength of our business model delivers consistent financial performance. Improved margins, greater efficiencies, the strength of our golf business and strong cash flow continue to drive our earnings increases. As we head into our seasonally largest quarter, our inventory is on plan and our stores are well positioned to deliver solid results," said Edward Stack, chairman and ceo.

For the full year 2007, the company is increasing its earnings guidance to be about $1.29 per diluted share. Comparable-store sales for Dick's Sporting Goods stores are expected to increase approximately 2% compared to a 6% increase last year.

For the fourth quarter 2007, the company anticipates consolidated earnings per diluted share of approximately 59 cents, as compared to 60 cents in 2006. Comparable-store sales for Dick's stores are expected to increase approximately 2%.