Financials: Dick’s Sporting Goods 2Q same-store sales rise 3.8 percent; Mammut mid-year sales up; Spyder up for sale

Dick’s Sporting Goods followed its fellow national outdoor/fitness retailers with positive earnings in the second quarter. Plus, Mammut sees sales rise on footwear and avalanche safety equipment and Spyder Active Sports reportedly puts itself up for sale.
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Sporting goods sales continue to rise with this summer’s temperatures.

Pittsburgh-based Dick’s Sporting goods reported same-store sales up 3.8 percent, joining its peer national outdoor/fitness retailers reporting better-than-expected positive figures as the brands recover from the weak winter.

The same-store sales increase for Dick’s came from a 2.9 percent gain at Dick’s Sporting Goods stores and a 4.4 percent rise at its Golf Galaxy stores. E-commerce sales rose 34 percent.

Total second-quarter revenue for Dick’s, including four new stores, rose 10 percent to $1.4 billion. Quarterly net income dipped to $53.7 million, from $73.8 million a year ago, primarily due to the company’s investment in Britain’s JJB sporting goods retail business, which is struggling with Europe’s economic downturn, officials said.

"While we continue to believe in the underlying opportunity within the U.K. sporting goods market, in light of these developments and our own assessments, we have determined to fully impair the value of our investment,” Dick’s CEO Edward Stack said in a press release. “As we indicated at the outset, this is a high risk investment that was structured to provide us with meaningful upside and capped downside.”

At home in the United States, officials are more upbeat, saying they expect same-store sales to rise by 4 to 5 percent for 2012, versus a 2 percent increase in 2011.

The company plans to open 21 new Dick’s Sporting Goods stores, relocating three, during the third quarter for a total of 38 new stores this year. As of July 28, 2012, the company had 490 Dick’s Sporting Goods stores in 44 states and 81 Golf Galaxy stores in 30 states.

"We plan to drive continued long-term profitable growth by investing in new stores, developing our omni-channel capabilities and increasing our margins through inventory management, an emphasis on private brands, and the continued shift of our product mix to higher margin merchandise categories," Stack said.

On the private label push, Dick’s said it entered into an agreement to purchase the intellectual property rights to the Field & Stream mark in the hunting, fishing, camping and paddle categories for about $25 million.

Last week, fellow outdoor/fitness retailer Sports Chalet reported its latest quarterly same-store sales up 2.3 percent, and its first net profit (albeit small at $100,000) in five years, pulling out of slump from the economic downturn and weak winter.

Similarly, Big Five Sporting Goods same-store sales rose 1 percent for the second quarter, its first improvement since third quarter 2010. Hibbett Sports will report its latest earnings on Friday to round out the large sporting goods stores’ second quarter-results.

Mammut sales up 7.5 percent in first half 2012

Mammut Sports Group was able to shake off a weak winter with its revenue rising 7.5 percent to CHF 91.8 million ($93.8 million) for the first six months of 2012 thanks to higher footwear and avalanche protection sales.

The Swiss outdoor company, which also owns the avalanche safety brand Snowpulse, reported results as part of its larger diversified parent company Conzzeta Group, which reported mid-year sales up 3.2 percent, with a lower profit.

Spyder Sports on the block

Spyder Active Sports is reportedly up for sale, according to unnamed sources in a New York Post story.

Private-equity owner Apax Partners reportedly is looking to fetch $150 million for the Boulder, Colo.-based ski apparel brand, the sources said. The paper points out, however, (as some in the industry might suspect) that the “auction process could face some rough sledding” in the wake of weaker sales from last season’s balmy winter.

Officials with Apax and Spyder are declining to comment on the report.

--David Clucas

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