Dick's a winner in earnings game

Dick’s Sporting Goods reported a decline in second quarter sales and profits Thursday morning that was less than the company expected.

Earning per share for the quarter were 36 cents, higher than the range of 28 cents to 31 cents the company provided back in may, but below prior year earnings of 38 cents. Total sales increased 3.7% to $1.13 billion due to the addition of new stores as same-store sales declined 4.1%, far better than the company’s earlier guidance which anticipated a declined in the range of 6% to 9%.

“In the second quarter, we generated higher than anticipated sales, continued to effectively manage inventory, and leveraged operating expenses. As a result, we generated higher earnings from our Dick’s Sporting Goods stores this year compared to the same quarter last year, in spite of the challenging economic environment,” said Ed Stack, chairman and CEO. “In addition, with higher sales and better than anticipated operating leverage, Golf Galaxy performed better than originally expected.”

In the second quarter, the company opened four Dick’s Sporting Goods stores and converted the remaining acquired Chick's Sporting Goods stores to the Dick’s format. So far this year, the company has opened 13 Dick’s stores and one Golf Galaxy store. The company ended its second quarter on August 1, with a total of 500 stores, consisting of 409 Dick’s stores and 91 Golf Galaxy stores.