Dick's Sporting Goods Inc. treated financial analysts on Monday to a rising stock price and an improved bottom line as it reported its first quarterly earnings report as a public company.
Dick's, headquartered in North Fayette, reported net income of $2.8 million, or 14 cents per diluted share, on sales of $291 million for its fiscal third quarter ended Nov. 2. That compared to net income of $1.6 million, or 8 cents per share, on sales of $247 million in the same quarter one year ago.
For the 39-week period prior to Nov. 2, Dick's had sales of $877 million, an increase of 20 percent over the said period last year. For stores open at least a year, sales increased 5.2 percent.
The company said it expects same-store sales to increase about 2 percent in the fourth quarter. It expects pro forma earnings per share in the range of 63 to 64 cents for the fourth quarter and $1.52 to $1.53 for the full fiscal year.
Dick's stock closed up 95 cents at $20.85 yesterday, before the earnings report was issued. Since Dick's initial public stock offering at $12 a share on Oct. 16 — barely six weeks ago — the stock has climbed nearly 75 percent.
In a conference call with analysts yesterday, Dick's Chairman Ed Stack said sales were strong in golf, team sports, camping and women's footwear and apparel, while the sporting goods chain experienced lower sales in in-line skates, hunting gear and fishing tackle.
During the quarter, the chain opened seven stores — one each in West Virginia, Michigan, Illinois, Ohio, Kansas, Nebraska and Virginia, bringing its count to 141 stores in 25 states.
President William Colombo said the new stores helped the chain fill out existing markets such as Cleveland, where it has eight stores, and penetrate new markets such as Wichita, Kan. Dick's also has eight stores in the Pittsburgh market.
He said the company expects to add 15 to 20 stores in 2003.
Chief Financial Officer Michael F. Hines said Dick's gained valuable talent in the quarter when it hired 20 former Kaufmann's employees who were casualties of May Department Stores Co.'s decision to consolidate its Kaufmann's and Filene's chains in Boston, leaving hundreds in Pittsburgh without jobs.
Dick's relocated its headquarters from Binghamton, N.Y., to Pittsburgh in 1994, in order to accommodate expansion. The chain also operates a distribution center in Smithton, Westmoreland County.
