Dicks Sporting Goods Q1 Profit Meets Estimates

Dicks Sporting Goods Inc DKS reported in-line earnings for the first quarter ended May 2, 2015. The Coraopolis, Pennsylvania-based company posted quarterly net income of $63.3 million, or $0.53 per share, compared to $70.0 million, or $0.57 per share, in the year-ago period. The company's non-GAAP net income in the year-ago quarter was $61.3 million, or $0.50 per share. Dicks Sporting had expected Q1 earnings of $0.49 to $0.53 per share. Its net sales climbed to $1.565 billion from $1.439 billion. However, analysts were expecting earnings of $0.53 per share on revenue of $1.56 billion. The average estimate among 9 Estimize users was for earnings of $0.60 per share and revenue of $1.68 billion. Its total same store sales rose 1.0 percent in the quarter. Same store sales for DICK'S Sporting Goods climbed 1.8 percent, while Golf Galaxy same store sales dropped 11.0 percent. In the quarter, the company opened 9 new DICK'S Sporting Goods stores and 1 new Field & Stream store. The company repurchased around 2.6 million shares of its common stock for a total cost of $150 million in the first quarter. At the end of the first quarter, Dicks Sporting had approximately $81 million in cash and cash equivalents. "We are pleased with our first quarter results as we generated earnings at the high end of our expectations, despite a slow start to the spring season," said Edward W. Stack, Chairman and CEO. "I am confident in our full year outlook as we remain focused on growing our business through driving store productivity, adding new stores in new and underpenetrated markets, expanding and controlling our eCommerce business, and further developing our Field & Stream specialty concept." DICK's now expects FY15 earnings of $3.12 to $3.20 per share, versus earlier forecast of $3.10 to $3.20 per share. It projects same store sales growth of 1 percent to 3 percent. For the second quarter, DICK's projects earnings of $0.73 to $0.76 per share, versus analysts' estimates of $0.76 per share. Dicks Sporting shares fell 4.12 percent to $53.97 in pre-market trading.