Dick’s Posts Profit in Q2

Dick’s Posts Profit in Q2
A Dick's Sporting Goods location.

Dick’s Sporting Goods Inc. reported higher-than-estimated earnings Thursday for the second quarter ended July 31.

The Pittsburgh-based chain’s net income for the period was $51.5 million, or 43 cents a share, up 32 percent from $39 million, or 33 cents, from the same period a year ago. The company had in May estimated earnings to be between 37 cents and 39 cents.

Net sales for the second quarter rose 9 percent to $1.2 billion, primarily due to a 5.7 percent increase in consolidated same-store sales and the opening of new stores, the company said.

“We [generated] our highest level of earnings per share in any second quarter and [produced] our fourth straight quarter of positive same-store sales,” said Dick’s Chairman and CEO Edward Stack.

As at July 31, Dick’s Sporting Goods had $278 million in cash and cash equivalents and no outstanding borrowings under its $440 million revolving credit facility. That compared with $51 million in cash and cash equivalents and $20 million of outstanding borrowings as at Aug. 1, 2009.

The sporting-goods retailer also raised its full-year earnings forecast by 3 cents, to between $1.46 and $1.49 a share.

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