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Dick's Sporting Goods Q1 tops Street, raises outlook

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Dick's Sporting Goods (NYSE:DKS) raised its full year 2012 outlook on Tuesday, after reporting a first quarter profit of $57.2 million that beat store expectations, reflecting the growth of its store network.

For the period that ended April 28, net income was $57.2 million, or 45 cents per diluted share, well above the $37.5 million, or 30 cents per diluted share, a year ago.

These latest results exceeded the company‘s expectations provided in early March, of 36 to 38 cents per diluted share, and analyst expectations of 38 cents per share.

Net sales increased 15.1 percent to $1.3 billion, topping analysts' predicted revenue of $1.23 billion. Comparable store sales for the quarter increased 8.4 percent.

Same store sales are an important metric by which to gauge a retailer‘s health, as they exclude sales from stores that recently opened or closed during the year.

Same store sales at Dick‘s Sporting Goods Stores rose 7.3 percent, while Golf Galaxy stores saw a 12.6 percent increase in same store sales. The eCommerce business saw sales rise 33.4 percent.

The company predicts same store sales to increase between two to three percent in the second quarter, and three to four percent for the full year 2012.

"We had an exceptionally strong first quarter as we generated record earnings with a 50% increase in earnings per share on 15% sales growth," said chairman and CEO Edward W. Stack.

"We also maintained a healthy balance sheet while returning capital to stockholders through our dividend and share repurchase programs.

"For 2012, we are raising our full year guidance as we continue to invest in new stores and our eCommerce business as well as our margin accelerators including inventory management, private brands, and product mix shift."

Dick‘s raised its expectations on full year estimated earnings from $2.38 to $2.41 per diluted share, to $2.45 to $2.48 per diluted share. Analysts predict earnings of $2.43 per share.

In the first quarter, Dick‘s opened six new Dick‘s Sporting Goods Stores, now operating a total of 486 Dick‘s Sporting Goods Stores in 44 states, and 81 Golf Galaxy stores in 30 states.

The company expects to open 40 new Dick's Sporting Goods stores in the year 2012.

The company ended the quarter with $521 million in cash and equivalents, and did not have any outstanding borrowings under its $500 million revolving credit facility.

In the first quarter, Dick‘s repurchased 2.1 million shares of its common stock for a total cost of roughly $104 million.

On Monday, Dick‘s board of directors announced a quarterly dividend on the company‘s common stock, and class B common stock, of 0.125 cents per share. The dividend is payable June 29, to stockholders of record as of June 1.

Shares of Dick’s were up around 7.3 percent early Tuesday Morning, to $50.80.

Quick facts: Dick's Sporting Goods

Price: 66.33 USD

NYSE:DKS
Market: NYSE
Market Cap: $5.94 billion
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