News Column

Dick's Sporting Goods Q4 Profit Up 17 Percent

March 11, 2013

Kim Leonard, The Pittsburgh Tribune-Review

Dick's Sporting Goods Inc. cut its inventory of outerwear late in 2012 as sales lagged due to warm weather, a move that "did limit our ability to capture sales in January when temperatures dropped and snowfall increased," CEO Edward W. Stack said.

The retailer reported a $129.7 million fourth-quarter profit, or $1.03 a share, on Monday, on the low end of its previous guidance. The latest profit is up almost 17 percent from the $111.1 million, or 88 cents, reported a year ago.

Stack said athletic footwear and apparel sold well at the Findlay-based company's stores, and hunting items exceeded expectations during the 14 weeks ended Feb. 2. Sales increased 12 percent to $1.8 billion.

For 2013, Dick's plans to invest in mobile sales technology, pilot a pick-up-in-store program and add electronic commerce staff, along with developing new concepts.

Two True Runner stores and two Field & Stream stores are to open this year. The company is taking steps to convert a former Dick's location in Cranberry Square to a Field & Stream outdoor equipment store.

For the full year, Dick's profit was $290.7 million, or $2.31 a share, on sales of $5.8 billion, compared to $263.9 million, or $2.10, on sales of $5.2 billion in 2011.

Kim Leonard is a staff writer for Trib Total Media.

Source: (c)2013 The Pittsburgh Tribune-Review (Greensburg, Pa.) Distributed by MCT Information Services

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