Dick's reports 3.3% 4Q EPS increase

PITTSBURGH Dick's Sporting Goods today reported that net income for the 13 weeks ended Feb. 2 increased 8% to $73.2 million and earnings per diluted share increased 3.3% to 62 cents, compared to prior year net income of $67.7 million, or 60 cents per diluted share for the 14-week quarter, which provided an extra week of operations and included the favorable impact of sales of licensed merchandise relating to the Super Bowl.

Net sales for the 13 weeks increased 18% to $1.2 billion due to the opening of new stores, the inclusion of Golf Galaxy in this year's quarterly results (which will be included in Dick's Sporting Goods comparable-store sales calculation beginning in the first quarter of 2008), and a comparable-store sales increase of 2.7%.

"We are pleased to have delivered  fourth quarter sales and earnings in excess of our guidance, culminating a year in which our business generated a 30% EPS increase. We also made two acquisitions, continued to capture market share in new and existing markets, expanded our merchandise margin, and improved our operating efficiency," said Edward Stack, chairman and ceo.

Net income for the 52 weeks ended Feb. 2 increased 38% to $155 million and earnings per diluted share increased 30% to $1.33, as compared to prior year 53 week net income of $112.6 million, or $1.02 per diluted share.

Net sales for the 52 weeks increased 25% to $3.9 billion as compared to the 53 weeks ended Feb. 3, 2007, while comparable-store sales at Dick's stores on a 52-week to 52-week basis increased 2.4%, compared to a 6% increase last year.

For the full year 2008, the company anticipates reporting consolidated earnings per diluted share of approximately $1.49 to $1.54.  This represents an approximate 12% to 16% increase over earnings per diluted share for the full year 2007 of $1.33. Comparable-store sales, which include Dick's Sporting Goods and Golf Galaxy stores, are expected to be approximately flat to an increase of 1%. 

For the first quarter 2008, the company expects consolidated earnings per diluted share of approximately 16 cents to 19 cents, as compared to first quarter 2007 earnings per diluted share of 19 cents. Comparable-store sales, which include Dick's and Golf Galaxy stores, are expected to decrease approximately 1%  to 4%.