Despite a 9 percent increase in revenue, Dick’s Sporting Goods Inc.’s third-quarter profit declined.
For the period ended Oct. 30, the Pittsburgh-based retailer earned a net income of $16.9 million, or 14 cents a share, down 11 percent from $18.9 million, or 16 cents, in the same period a year ago.
Net sales for the third quarter totaled $1.1 billion, due primarily to a 5.1 percent increase in consolidated same-store sales, which were in turn driven by comps increases at Dick’s Sporting Goods stores, Golf Galaxy and a 82.4 percent surge in e-commerce.
But the group’s expenses rose 19 percent, partly due to the opening of 12 new Dick’s stores and the remodeling of eight Dick’s locations.
“We are also increasingly optimistic about our future growth opportunities, including the potential to more than double our network of Dick’s Sporting Goods stores and to fuel the growth of our Golf Galaxy and e-commerce businesses, while continuing to drive margin expansion and deliver long-term shareholder value,” said Edward Stack, chairman and CEO.
Dick’s Sporting Goods expects full-year consolidated same-store sales to increase between 4.5 percent and 5.5 percent, compared with a 1.4 percent decrease in 2009.
The company ended the third quarter with $159 million in cash and cash equivalents, compared with $40 million at the same time last year.