Shares of Dick’s Sporting Goods Inc. jumped as the firm beat the Street in its first quarter.
For the period ended May 4, the Pittsburgh-based sporting goods retailer earned a net income of $64.8 million, or 52 cents a share, versus $57.2 million, or 45 cents, in the same period a year ago. Analysts were expecting earnings per share to come in at 48 cents.
Net sales increased 4.1 percent to $1.33 billion, from $1.28 billion. Consolidated same-store sales slipped 1.7 percent, which management did not expect, on the back of a 1.3 percent dip at Dick’s Sporting Goods stores and a 7.4 percent decrease at Golf Galaxy.
“In the first quarter, we generated earnings in line with our original guidance, but were not pleased with our sales results, which came in below our expectations,” Edward Stack, chairman and CEO of Dick’s, said in a statement.
Stack continued: “To drive sales and preserve margins in the near-term, we will work with our vendor partners, particularly in golf, to provide value offerings; we will aggressively execute our store remodel program, with approximately 75 percent of the identified stores expected to be completed by the end of the second quarter; and we will continue to tightly manage clearance inventory, which has declined meaningfully.”
For the full year, Dick’s expects EPS to come in between $2.84 and 2.86. Consolidated same-store sales are expected to increase between 2 percent and 3 percent.
The company ended the quarter with $114 million in cash and cash equivalents, down from $521 million a year ago, with capital going toward funding its share repurchase programs, paying quarterly dividends, purchasing its store support center and building a distribution center.