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 outdoor 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.
Rugged Bear liquidating stores
Left without a sufficient bid to continuing operating the business, outdoor children’s clothing retailer The Rugged Bear Co. (www.ruggedbear.com) is liquidating its stores.
The U.S. Bankruptcy Court, District of Massachusetts, approved a bid from liquidator Gordon Brothers Group to run going-out-of-business sales at Rugged Bear’s 29 locations in Massachusetts, New York, Connecticut, Maine, Vermont and New Hampshire, starting March 4.
The 30-year-old, Boston-based Rugged Bear was founded by Alan McDonough, the co-founder of Eastern Mountain Sports, in 1980, and later sold to Detwiler Fenton Group in February 2010.
--Compiled by David Clucas