Dick's Sporting Goods Inc. posted a profit of $64.8 million in the first quarter, up from $57.2 million a year earlier, but the Findlay retailer wasn't pleased with sales results and resolved to step up its game.
Total sales of $1.33 billion during the three months ended May 4 were up 4.1 percent over $1.28 billion a year earlier.
Yet sales in stores that have been open at least a year, called same-store sales, fell more than the company had predicted. Same-store sales at the Golf Galaxy stores showed the largest decline.
"In the first quarter, we generated earnings in line with our original guidance, but were not pleased with our sales results, which came in below our expectations," said Edward W. Stack, chairman and CEO, in the official announcement this morning.
"To drive sales and preserve margins in the near term, we will work with our vendor partners, particularly in golf, to provide value offerings; we will aggressively execute our store remodel program, with approximately 75 percent of the identified stores expected to be completed by the end of the second quarter; and we will continue to manage clearance inventory, which has declined meaningfully," he said.
On a per-share basis, Dick's reported earnings of 52 cents per share, up from 45 cents per share.
Excluding a one-time gain from a partial recovery of the company's impaired investment in a sports retailer in the U.K., earnings were 48 cents per share, meeting the expectations of analysts polled by Thomson Financial.
Teresa F. Lindeman: email@example.com or at 412-263-2018.