Dick's Sporting Goods Swings To Q4 Profit, Tops Estimates


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March 9, 2010 2:57 p.m. EST

Topics: earnings, company information, economy, business and finance, United States
Mitchell Jaworski - AHN Reporter

Pittsburgh, PA, United States (AHN) - Dick's Sporting Goods reported Tuesday a fourth quarter profit as same-store sales growth and e-commerce sales helped boost results.

The sporting goods chain said it earned $67.4 million or 56 cents a share in the fourth quarter, compared to a loss of $105 million or 94 cents a share in the same period a year ago.

Net sales jumped 10.3 percent to $1.3 billion in the quarter as the opening of new stores, addition of e-commerce sales and a 2.5 percent rise in same-store sales.

Results pleased analysts, who were looking for 55 cents a share on $1.3 billion, according to Thomson Reuters.

"Despite the difficult economic environment of 2009, our associates successfully generated more sales, effectively managed inventory levels, and continued to exercise financial discipline," said Edward W. Stack, chairman and chief executive officer. "As a result, we generated higher profits, leveraged expenses, further strengthened our balance sheet and believe we gained market share in 2009."

Dick's Sporting Goods opened 24 new stores in 2009, bringing its domestic operating total to 419 stores covering 40 states.

For the full-year ended Jan. 31, the company earned $141.4 million or $1.20 a share, up from $134.1 million or $1.15 a share in the prior year.

Looking ahead, Dick's expects to earn between $1.32 and $1.35 a share for the year with profit of 12 to 15 cents coming in the first quarter. Same-store sales are expected to grow 2 to 3 percent in both the first quarter and for the full-year.


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