Dick's Sporting Goods raises 4Q, FY outlook

PITTSBURGH Dick's Sporting Goods announced that it is raising its fourth-quarter and full-year 2009 expectations due to better than anticipated quarter-to-date performance.

Based on an estimated 120 million diluted shares outstanding, the company now anticipates reporting consolidated earnings per diluted share of at least 54 cents compared to the previous estimate of 41 cents to 46 cents provided on Nov. 19, 2009. In the fourth quarter of 2008, the company reported non-GAAP consolidated earnings per diluted share of 54 cents. On a GAAP basis for the fourth quarter of 2008, the company reported a loss of 94 cents per diluted share, which included a non-cash impairment charge and merger and integration costs.

Dick's said it now expects comparable-store sales for the fourth quarter of 2009 to increase approximately 2% as compared with the previously expected decline of 6% to 4% provided on Nov.19, 2009. Comparable-store sales declined 8.6% in the fourth quarter of 2008.

Based on an estimated 118 million diluted shares outstanding, the company now anticipates reporting consolidated earnings per diluted share of at least $1.17 for the full year 2009, excluding merger and integration costs as compared with expectations provided on Nov. 19, 2009 of $1.04 to $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 with previous expectations of approximately 99  cents to $1.04 earnings per diluted share provided on Nov. 19, 2009. In 2008, the company reported a net loss of 36 cents per diluted share on a GAAP basis.

Dick's reported that comparable-store sales are currently expected to decrease approximately 2% compared with the company's previous expectation of a decline of approximately 4% to 3%. In 2008, comparable-store sales declined 4.8%.

"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 Stack, Chairman and CEO. "The better than expected comparable sales were seen across all major categories."