Dick's Sporting Goods posts Q1 earnings of 0.52 dollar

Dick’s Sporting Goods reported consolidated net income for the first quarter ended April 29, 2017 of 58.2 million dollars or 0.52 dollar per diluted share, compared to the company's earlier expectations provided on March 7, 2017 of 0.48 dollar to 0.53 dollar per diluted share. On a non-GAAP basis, consolidated net income was 60.3 million dollars or 0.54 dollar per diluted share, compared to the company's earlier expectations of 0.50 dollar to 0.55 dollar per diluted share.

"In the first quarter, we generated non-GAAP earnings per diluted share near the high end of our guidance. Despite a challenging retail environment, we realized growth across each of our three primary categories of hardlines, apparel and footwear, and were pleased with the performance of our newly relaunched ecommerce site," said Edward W. Stack, Chairman and CEO in a media release.

First quarter net sales up 9.9 percent

Net sales for the quarter increased 9.9 percent to approximately 1.8 billion dollars and consolidated same store sales increased 2.4 percent, compared to the company's guidance of an approximate 3 to 4 percent increase. First quarter 2016 consolidated same store sales had increased 0.5 percent.

Following the launch of the company's new ecommerce platform, ecommerce sales increased 11 percent. Ecommerce penetration for the first quarter was 9.3 percent of total net sales, compared to 9.2 percent during the first quarter of 2016. In the first quarter, the company opened 15 new Dick’s Sporting Goods stores, two new Field & Stream stores, and eight new Golf Galaxy stores. The company also relocated two Dick’s Sporting Goods stores, and closed one Golf Galaxy store and as of April 29, 2017, operated 691 Dick’s Sporting Goods stores in 47 states, 98 Golf Galaxy stores in 32 states and 29 Field & Stream stores in 14 states.

Dick’s Sporting Goods expects spike in Q2 earnings

Based on an estimated 112 million diluted shares outstanding, the company currently anticipates reporting earnings per diluted share in the range of 0.98 dollar to 1.03 dollar in the second quarter of 2017 compared to earnings per diluted share of 0.82 dollar in the second quarter of 2016.

On a non-GAAP basis, the company currently anticipates reporting earnings per diluted share in the range of 1.02 dollars to 1.07 dollars in the second quarter, excluding severance and other employee-related costs.

Consolidated same store sales are currently expected to increase approximately 2 to 3 percent, as compared to a 2.8 percent increase in the second quarter of 2016. The company expects to open 13 new Dick’s Sporting Goods stores in the second quarter. These openings include former TSA stores that the company plans to convert to Dick’s Sporting Goods stores.

Based on an estimated 111 to 112 million diluted shares outstanding, the company currently anticipates reporting earnings per diluted share in the range of 3.59 dollars to 3.69 dollars, which includes approximately 0.05 dollar per diluted share for the 53rd week. The company had reported earnings per diluted share of 2.56 dollars for the 52 weeks ended January 28, 2017. Non-GAAP earnings per diluted share are expected to be in the range of 3.65 dollars to 3.75 dollars excluding severance and other employee-related costs, as well as TSA conversion costs. The company reported non-GAAP earnings per diluted share of 3.12 dollars for the 52 weeks ended January 28, 2017.

Consolidated same store sales are currently expected to increase approximately 1 to 3 percent on a 52 week to 52 week comparative basis, compared to an increase of 3.5 percent in 2016. The company expects to open approximately 43 new Dick’s Sporting Goods stores and relocate approximately six in 2017. The company also expects to open approximately eight new Golf Galaxy stores, relocate one Golf Galaxy store and open eight new Field & Stream stores adjacent to new or relocated Dick’s Sporting Goods stores.

On May 11, 2017, the company's Board of Directors authorized and declared a quarterly dividend in the amount of 0.17 dollar per share on the company's Common Stock and Class B Common Stock.

Picture:Facebook/Dick's Sporting Goods