News Column

Dick's beats expectations but golf pressures profit

August 19, 2014

By Chris Fleisher, The Pittsburgh Tribune-Review



Aug. 19--Women's and youth apparel helped drive sales higher at Dick's Sporting Goods in the second quarter, although continued declines in the golf and hunting business cut into profits.

The sporting goods retailer said net income declined 17.5 percent to $69.5 million, or 57 cents per share, in the three months ended June 30, from $84.2 million, or 67 cents, in the same period a year ago.

The decline in profits came despite a 10.3 percent increase in net sales and 3.2 percent growth in same store sales, a key measure of a retailer's performance. Total sales rose to $1.69 billion from $1.53 billion a year ago.

The results came in "at the high end of our expectations," CEO Edward Stack said in a statement, and were better than many analysts expected. Dick's shares rose $1.03, or 2.4 percent to $44.54, in early afternoon trading.

"They're doing all right," said Paul Swinand, an analyst at Morningstar.

Still, the company is struggling against headwinds in golf and hunting businesses. Sales at its Golf Galaxy stores fell 9.3 percent. The company recorded pre-tax charges of $20.4 million from restructuring its golf business. That included a $3.7 million severance charge related to a laying off golf professionals at its Dick's stores.

Chris Fleisher is a staff writer for Trib Total Media. He can be reached at 412-320-7854 or cfleisher@tribweb.com.

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(c)2014 The Pittsburgh Tribune-Review (Greensburg, Pa.)

Visit The Pittsburgh Tribune-Review (Greensburg, Pa.) at www.triblive.com

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Source: Pittsburgh Tribune-Review (PA)


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