Dick’s Sporting Goods tops Q3 estimates but gives weak guidance

Dick's Sporting Goods Inc. on Tuesday reported better-than-expected sales and earnings for its fiscal third quarter but tempered its good news with a weak outlook for the fourth quarter.



Dick’s posted net income of $48.9 million for the quarter ended Oct. 31, up from $47.2 million in the year-ago period.



On a per-share basis, the Coraopolis, Pennsylvania-based company said it had profit of 44 cents. Earnings, adjusted for non-recurring costs, were 48 cents per share.



Revenue rose 10.2% to $1.81 billion in the period. Consolidated same-store sales rose 5.2%. Online sales in the quarter represented 9.6% of total net sales, compared to 8.0% last year.



The company’s guidance was worse than expected. For the current quarter ending in January, Dick's expects its per-share earnings to range from $1.19 to $1.31. Analysts surveyed by Zacks had forecast adjusted earnings per share of $1.32.



As of October 29, 2016, the company operated 676 Dick’s Sporting Goods stores in 47 states, 74 Golf Galaxy stores in 29 states, and 27 Field & Stream stores in 13 states.



On Nov. 2, Dick’s acquired Golfsmith International Holdings for $43 million in connection with Golfsmith's Chapter 11 proceeding. The purchase price was approximately $43 million, of which $32 million is related to inventory. Intellectual property includes the name "Golfsmith", as well as Golfsmith's domain names, owned trademarks and customer information.