Dick's Sporting Goods Q3 profit drops 40 percent
Dick's Sporting Goods (NYSE: DKS) said its fiscal third-quarter profit fell 40 percent on acquisition-related costs.
For the period ended Nov. 1, net income dropped to $7.4 million, or $0.06 per share, compared with $12.2 million, or $0.10 per share, a year earlier. Excluding costs related to the 2007 acquisition of Golf Galaxy, earnings were $9.2 million, or $0.08 per share.
Quarterly revenue grew 10 percent to $924.2 million from $838.8 million on the November 2007 acquisition of Chick's Sporting Goods and new store openings.
Same-store sales fell 2.8 percent in the quarter and do not include results from Chick's.
Dick's reduced its full-year adjusted earnings forecast, citing uncertainty over consumer holiday shopping and economic conditions. It now expects a full-year adjusted profit between $1.13 and $1.20 per share, which excludes Golf Galaxy acquisition-related costs. It previously predicted adjusted net income of $1.27 to $1.36 per share.
Dick's expects 2008 same-store sales will be down about 4 percent to 5 percent, which excludes results from Golf Galaxy and Chick's Sporting Goods stores.
The company said it expects fourth-quarter adjusted earnings between $0.49 and $0.56 per share. It predicts a quarterly same-store sales decline of about 6 percent to 10 percent, which includes Golf Galaxy stores and excludes Chick's stores.
The company operates more than 350 Dick's stores in 38 states, plus 80 Golf Galaxy stores in 30 states and 15 Chick's Sporting Goods stores in southern California. It opened or acquired 54 stores under the various brands it controls this year.
The company has said it hopes to have 800 stores nationwide in the next seven years, but next year, the company plans to open just 18 Dick's stores and one Golf Galaxy location.
Q3 profit slips for Hibbett Sports
As overhead and other costs increased, Hibbett Sports (Nasdaq: HIBB) said its third-quarter profit dropped 2 percent despite a pickup in sales.
For the quarter ended Nov. 1, earnings were $7.7 million, or $0.26 per share, compared with $7.8 million, or $0.25 per share, a year earlier.
Sales increased 8 percent to $140.1 million. Same-store sales were up 0.4 percent.
But store operating, selling and administrative expensive climbed, to $31.1 million from $26.9 million, and depreciation and amortization costs also increased.
Hibbett opened 22 new stores and closed 8 stores in the quarter, leaving it with 726 stores in 24 states on Nov. 1. For the next fiscal year, the company plans to open 75 to 79 new stores and close 12.
Also, Hibbett said it expects to earn $0.97 to $1.04 per share in the fiscal year that ends Jan. 31. Hibbett earlier had forecast full-year earnings of $0.93 to $1.03 per share. It said the new forecast was based on same-store being flat to up 2 percent in the November-January quarter.
Foot Locker reverses year-ago loss in Q3
Foot Locker (NYSE: FL) said it reversed a year-ago loss in the third quarter, but sales fell on a pullback in consumer spending.
The retailer said it earned $24 million, or $0.16 a share, in the quarter ending in October. That compares to a loss of $33 million, or $0.22 a share, in the same period last year.
Foot Locker said the latest quarter's results include an impairment charge of $3 million, or $0.02 a share, related to the write down of the value of a short-term investment.
Last year's third-quarter results include a charge of $66 million, after tax, or $0.43 a share, related to expenses for closing stores.
When stripping out the one-time charges, the company's profit fell 18.2 percent to $27 million, or $0.18 a share, from $33 million, or $0.21 a share, last year.
Sales dropped 3.5 percent to $1.31 billion from $1.36 billion last year. Same-store sales fell 1.7 percent.
Foot Locker said it expects earnings per share, excluding impairment charges, to range from $0.50 to $0.63 in fiscal 2008, which is down from previous guidance that it would range from $0.70 to $0.85. It also said it has a "more guarded outlook" for the fourth quarter, though it did not give specific guidance.
Additionally, its board of directors declared a quarterly cash dividend on the company's common stock of $0.15 per share, which will be payable on Jan. 30, 2009, to shareholders of record on Jan. 16, 2009.
Nike shares rise on dividend increase
Shares of Nike (NYSE: NKE) rose Nov. 21 after the company increased its regular quarterly dividend by 9 percent, to $0.25 from $0.23 per share. Its shares rose $4.27, or 9.8 percent, to close at $47.88.
Nike will pay the dividend Jan. 5 to shareholders of record Dec. 8.
--Compiled by Wendy Geister
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