Dick’s Q3 Up

Dick's Q3 Up
A Dick's Sporting Goods store
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Dick’s Sporting Goods Inc. blew past estimates in the third quarter and raised its full-year guidance.

For the period ended Oct. 29, the Pittsburgh-based retailer earned a net income of $41.5 million, or 33 cents a share, more than triple the $16.9 million, or 14 cents, it earned in the same period a year ago.

Net sales for the quarter advanced 9 percent to $1.18 billion, on the back of a 4.1 percent increase in consolidated same-store sales, which were in turn buoyed mostly by a 16.8 percent jump in e-commerce comps.

Analysts were expecting earnings per share of 26 cents on revenue of $1.16 billion.

Kate McShane, analyst at Citi Investment Research, reiterated a “buy” rating on the stock.

“The same-store sales performance [highlights] continued momentum in the underlying business,” she wrote in a research note.

“Operating margin should reach double digits over the next three to five years, [while there is] ongoing execution on solid athletic apparel trends, footwear innovation and momentum, a change in store mix to team sports away from some fitness, and new ideas in the golf category,” she added.

Dick’s now expects full-year EPS to come in between $2.01 and $2.03, excluding a gain on sale of investments and the favorable impact of lower litigation settlement costs. This represents an increase of between 23 percent and 25 percent over 2010 levels, and is calculated on the assumption that full-year comps will rise 2 percent.

Dick’s ended the quarter with $483 million in cash and cash equivalents, and $139.1 million in long-term debt. Its shares were up 3.5 percent in morning trading.

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