Fitness financials: Dick’s Sporting Goods 4Q sales, profit up; IHRSA health club index up

Dick's Sporting Goods reported a 13.6 percent increase in revenue and a 30 percent increase in profit for its fiscal fourth-quarter. Plus IHRSA says health clubs' membership and financial figures improved in late 2010.
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Dick’s Sporting Goods 4Q revenue rises 13.6%, profit up 30%

Dick's Sporting Goods, Inc. (NYSE: DKS) reported higher revenue and profit for its fiscal 2010 fourth quarter, and it released bullish guidance for 2011 on March 8.

The Pittsburgh, Penn.-based sporting and fitness goods retailer reported $1.5 billion in revenue for its fiscal fourth quarter, ending Jan. 29, 2011 – up 13.6 percent from the same period a year ago.

The company’s fourth-quarter profit rose nearly 30 percent to $87.5 million, or $0.71 per diluted share, compared to $67.4 million, or $0.56 per diluted share a year ago.

Company officials credited the strong fourth-quarter performance to a 9.4 percent increase in consolidated same store sales, including an 8.6 percent increase at Dick's Sporting Goods stores, a 2.2 percent increase at Golf Galaxy and a 36.3 percent increase in its e-commerce business.

"We have successfully navigated the storms of the recession and have executed our business plan by posting six consecutive quarters of same store sales gains, opening 26 new stores in 2010, expanding our margin rates and reducing inventory per square foot, Dick’s Sporting Goods Chariman and CEO Edward W. Stack said in a statement. “As a result, we are solidly positioned to generate further growth and increased operating margins in the coming years."

For its full 2010 fiscal year, Dick’s Sporting Goods reported revenue up 10.4 percent to $4.87 billion, and net income rose to $182.1 million, or $1.50 per diluted share, compared to $135.4 million, or $1.15 per diluted share a year ago. Consolidated same store sales grew by 7.4 percent in 2010.

Looking ahead, officials forecasted earnings per diluted share between $1.89 and $1.91 for 2011, and they expect to open 34 new Dick’s Sporting Goods stores and three new Golf Galaxy stores this year.

IHRSA club index up in November, December

Health clubs improved their membership and financial performance in the last two months of 2010 from a year ago, according to the latest index put out by the The International Health, Racquet and Sportsclub Association (IHRSA).

The IHRSA Monthly Performance Index, which surveyed 300 select clubs, reached 105.7 and 105.1 in November and December 2010. An index of more than 100 denotes an expansionary environment, representing favorable business conditions for industry growth based on these indicators.

Nearly two-thirds of the respondents (66.3 percent) said their clubs posted increased year-to-date revenue as of Dec. 31, 2010, and about the same amount (65.7 percent) said they saw increased membership dues and fees.

Non-dues and fees revenue improved for over half of the respondents (56.4 percent).

More than three-fourths of respondents said their earnings before interest, taxes, depreciation and amortization (EBITDA) and before rent (EBITDAR) were about the same or up for the year-to-date vs. the prior year.

Club membership traffic was up in November and December, compared to a year ago, for 53.9 percent of respondents, and down for 27 percent.

Looking ahead, a majority of December respondents (80.8 percent) anticipate increased revenues in the next three months. Nearly three-quarters (73.1 percent) expect to make capital expenditures for equipment over the same time period.

--Compiled by David Clucas

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