Despite tough headwinds in its golf and hunting categories, Dick’s Sporting Goods Inc. reported a better-than-expected second quarter.
The Pittsburgh-based athletic retailer reported net income of $69.5 million, or 57 cents per diluted share. It was a 17 percent decrease from the year-ago period, when Dick’s reported income of $84.2 million, or 67 cents a diluted share. The retailer attributed the dip to increasing expenses and restructuring costs for the golf division.
Net sales for the quarter ending Aug. 2 were $1.7 billion, a 10.3 percent increase over $2.9 billion in the second quarter of 2013. The results beat analyst expectations of $1.65 billion in sales. Same-store sales for Dick’s increased by more than 4 percent, while Golf Galaxy stores fell 9.3 percent.
The retailer said that strength in team sports surrounding the World Cup in June and expanded selling space for women’s and youth apparel helped to offset soft sales in golf and hunting.
“Our results reflect strong performance across most areas of our business, partially offset by the performance of our golf and hunting businesses. Areas where we’ve made investments in reallocated space have been very positive,” said Edward Stack, chairman and CEO, in a call with analysts and shareholders.
The retailer relaunched its mobile app during the second quarter and also saw 6.3 percent of total sales from e-commerce. Though the company had a strong quarter, executives are still cautious about the back half of 2014.
“Looking to the second half of the year we are cautiously optimistic about the opportunities we see. However, we expect the retail environment to remain challenged due to the cautious consumer and promotional activity,” said Joseph Schmidt, president and COO.