Store-growth, e-commerce bring record profit at Dick's Sporting Goods
By Kim Leonard
Published: Tuesday, Nov. 13, 2012, 9:44 a.m.
Dick's Sporting Goods Inc. said strong sales in its stores and online resulted in a nearly 21 percent jump in profit for the third quarter, sending its stock sharply higher.
The Findlay-based retailer said Tuesday it earned a record $50.1 million, or 40 cents a share, for the August-October period, compared to $41.5 million, or 33 cents a share, a year ago.
Electronic commerce soared by 46.7 percent, as Dick's added a mobile app that customers can use to make purchases, access Scorecard loyalty accounts and earn rewards through social media. Dick's also is testing a ship-from-store program in 115 stores that cuts delivery times while raising profits.
The program “allows us to utilize inventory located in our stores which was previously unavailable online” CEO Edward W. Stack said, and the result has been a “meaningful increase” in online sales.
Overall sales grew by 11.2 percent to $1.3 billion, up from $1.18 billion a year ago. Same-store sales for Dick's stores were up 3.9 percent, while Golf Galaxy sales were 3.2 percent higher.
“This was a beautiful quarter, a very clean quarter that was driven by solid gross margin expansion and good comp (same-store) growth — everything you want to see, said Canaccord Genuity analyst Camilo Lyon.
E-commerce growth during the quarter is “indicative of Dick's doing a lot better job of getting the right product online,” Lyon said.
Shares of Dick's, which said in August it expected a 36 cents-a-share profit for the third quarter, ended the day at $50.97, up $2.27, or 4.7 percent. The shares are up 38.2 percent this year.
Dick's opened 21 stores in the third quarter, and in Western Pennsylvania opened relocated stores at South Hills Village and in Cranberry.
For the fourth quarter, Dick's slightly raised the low end of its previous guidance and said it now expects earnings per share of $1.03 to $1.05.
Kim Leonard is a staff writer for Trib Total Media. She can be reached at 412-380-5606 or email@example.com.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.