Dick’s Sporting Goods Q3 sales rise
Strong demand for footwear, gear and apparel boosted third-quarter sales for Dick’s Sporting Goods (NYSE: DKS) by 9 percent, it reported.
Sales were $1.08 billion versus $990 million for the same period last year. Sales at stores open at least a year rose 5.1 percent.
For the quarter ended Oct. 31, it earned $16.9 million, or $0.14 a share, compared with $18.9 million, or $0.16 a share, a year earlier. Excluding special items, the company earned $0.22 a share for the quarter.
Looking ahead, Dick's Sporting Goods, which operates 437 stores spread across 42 states, projected a profit of $0.69 to $0.71 per share for the fourth quarter. It also expects fourth-quarter same-store sales to rise 3 percent to 4 percent.
adidas to expand aggressively in China, Russia
adidas (ADSG.DE) said it expects China and Russia to eventually make up half of its total business, planning to open more than 2,500 stores in smaller Chinese cities and to expand its presence to 1,400 cities from 550 currently.
"We have laid out an ambitious five-year plan and expect to grow our business in Greater China by double digits each year. This will lay the foundation to regain market leadership in China by 2015," Christophe Bezu, adidas’ managing director of Greater China, said in a statement.
The company said earlier this month it aims to grow overall sales to EUR 17 billion (USD $17 billion) by 2015, up two-thirds on 2009 levels.
adidas said it is aggressively rolling out a new brand tailored to the youth market called Neo in lower-tier cities. It will also price its entry-level products at 15 percent lower than usual in those cities.
Chinese brands Li Ning and Anta have strongholds in lower-tiered cities where smaller incomes mean lower price points, while adidas has largely catered to the upmarket first and second-tiered cities like Shanghai and Beijing where city dwellers have higher incomes and are more brand conscious. But China's immense economic growth is making even the much smaller, tier 6 and 7 cities look attractive to the company.
The company said it also hopes to catch online shoppers with e-commerce, and will build a website for Chinese shoppers by 2012 to entice the country’s reported 420 million users.
--Compiled by Wendy Geister
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