UPDATE: Dick's Sporting Goods Posts Better-Than-Expected Q2 Profit, Shares Gain

Shares of Dick's Sporting Goods

surged more than 4.5% in pre-market trading after the company reported upbeat fiscal-second quarter profit. The Coraopolis, Pennsylvania-based company posted a quarterly profit of $69.5 million, or $0.57 per share, versus a year-ago profit of $84.2 million, or $0.67 per share. Excluding certain items, Dick's adjusted earnings came in at $0.67 per share. The company had earlier expected earnings of $0.62 to 0.67 per share. Dick's Sporting recorded $20.4 million in pre-tax charges in the quarter related to the restructuring of its golf business. Its sales jumped 10% to $1.69 billion. However, analysts were expecting earnings of $0.65 per share on revenue of $1.65 billion. Dick's same-store sales rose 3.2% in the quarter, versus its own forecast of around 1% to 3% rise. Same store sales for DICK'S Sporting Goods climbed 4.1%, while Golf Galaxy same store sales fell 9.3%. The company opened 8 new DICK'S Sporting Goods stores and 1 new Field & Stream store in the quarter. At the end of the second quarter, total inventory was 11.2% higher versus the end of the second quarter of 2013. In the quarter, Dick's repurchased around 2.2 million shares of its common stock at an average cost of $44.51 per share. On August 14, 2014, Dick's board declared a quarterly dividend in the amount of $0.125 per share. Edward W. Stack, Chairman and CEOMr. Stack said, "The headwinds in our hunting business continued in the second quarter. However, as we look at the entirety of our outdoor business, strength in other outdoor categories offset the declines in hunting, and our total outdoor comps were flat for the quarter. This gives us confidence and enthusiasm for the outdoor business as we continue to grow our Field & Stream and DICK'S stores." Dick's now projects fiscal-year earnings of $2.70 to $2.85 per share, versus analysts' estimates of $2.78 per share. It also expects Q3 earnings of $0.38 to $0.42 per share, versus analysts' expectations of $0.42 per share. Dick's shares gained 5.15% to $45.75 in pre-market trading.