Aug. 19--Dick's Sporting Goods reported a 10.3 percent increase in second-quarter sales, but the Findlay sporting goods retailer saw profit drop 17 percent during the period.
Dick's this morning posted a profit of $69.5 million, or 57 cents per share, for the three months ended Aug. 2, off significantly from $84.2 million, or 67 cents per share, earned during the same period a year ago.
Adjusted for charges taken to restructure its struggling golf business, the retailer reported net income of $81.7 million, or 67 cents per share, exceeding by 2 cents the average analyst estimate as calculated by Thomson Financial.
Total sales hit $1.69 billion during the quarter vs. $1.53 billion last year.
Sales at Dick's stores open at least a year rose 4.1 percent, but Golf Galaxy stores reported a comparable-store sales decline of 9.3 percent. Overall, the retailer reported a comparable-store sales gain of 3.2 percent.
"Our second quarter results came in at the high end of our expectations," said Edward W. Stack, chairman and CEO, in the official release. "As anticipated, the golf and hunting businesses continued to experience negative comps. However, excluding these two categories, the remainder of the business delivered a 7.8 percent same-store sales increase."
He said women's and youth athletic apparel sales were strong.
In the first quarter of this year, Dick's had reported that results in its golf business were not good. In this morning's release, the company said it recorded $20.4 million in pre-tax charges as it restructured that business, consolidating its Golf Galaxy merchandising, marketing and store operations into Dick's.
Last month, the Post-Gazette reported that the company had laid off almost 500 PGA professionals, a move announced by the PGA of America.
In this morning's earnings release, the company said $3.7 million of the pre-tax charges related to the restructuring were the result of severance related to "elimination of specific golf positions from the Dick's stores," in addition to combining other functions.
Mr. Stack's statement added, "These changes are necessitated by the current and expected trends in golf. We will invest these cost savings into other aspects of our store operations and into the growth areas of our business."
Teresa F. Lindeman: email@example.com or at 412-263-2018.
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