Financials: Dick’s Sporting Goods and Sport Chalet see boost in same-store sales, profit; plus Accell sales update

Dick's Sporting Goods and Sport Chalet both reported stronger same-store sales and profits heading into the holiday season. Plus Accell reports weaker-than-expected, third-quarter bike sales along with struggling sales in its fitness group.
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Two sporting goods chains, which also sell outdoor and fitness products, reported a boost in quarterly same-store sales as consumers head into the holiday season.

Pittsburgh-based Dick’s Sporting Goods (NYSE:DKS) said its revenue rose 9.3 percent to $1.2 billion in the third quarter 2011, fueled by 19 new store openings and a 4.1-percent rise in consolidated same-store sales, which included a 3.8-percent increase at Dick's Sporting Goods stores, a 2.4-percent increase at Golf Galaxy stores and a 16.8-percent increase in the company’s e-commerce business.

Dick’s third-quarter net income rose to $41.5 million, or $0.33 per diluted share, versus $16.9 million, or $0.14, during the same period a year ago.

With the positive results, company officials raised their full-year 2011 earnings per share projections to between $2.01 and $2.03 per diluted share – up from previous projections of between $1.94 and $1.96 per diluted share. Officials also announced the company’s first-ever dividend – an annual amount of $0.50 per share, payable Dec. 28, 2011, to stockholders of record on Dec. 7, 2011.

Fellow retailer Sport Chalet (Nasdaq: SPCHA) swung to a profit on higher same-store and online sales for its fiscal 2012 second quarter.

The outdoor, fitness and sporting goods chain of stores in the Southwest reported a quarterly net income of $600,000, or $0.04 per share, versus a net loss or $500,000, or a loss of $0.04 per share, a year ago. Profit margins increased slightly on fewer markdowns during Labor Day weekend sales, officials said.

Same store sales rose 3.1 percent, despite a slight decrease in total quarterly revenue – which slipped less than a percent to $88 million, versus $88.8 million a year ago. Officials said the decline was due to a fiscal timing shift, where this year’s Fourth of July weekend sales were included in the first quarter this year, instead of the second quarter last year.

Online sales at Sport Chalet grew 18 percent for the quarter. “Our data suggests our online business is helping drive customers into our stores, while establishing a national footprint online,” officials said in the earnings release.

Accell Group fitness revenue “remains difficult” in 3Q

Accell Group, parent company to Accell Fitness, and its Tunturi and Bremshey brands, issued a third-quarter update, noting weaker sales, including in fitness, but maintained projections to finish the year with higher full-year 2011 revenue compared to 2010.

Officials with the Netherlands-based company, which primarily focuses on cycling, said Accell’s bike sales came in weaker than expected in the third quarter due to bad weather in Europe. In addition, officials said revenue from its fitness group, which accounts for 3 percent of the business, “remains difficult … dealing with previously announced one-time additional costs due to scaling back of the fitness activities.”

As part of those changes earlier in 2011, Accell Fitness North America changed its business to container-direct distribution model.



--Compiled by David Clucas

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