Dick’s net income inches down By Dan Berthiaume

Pittsburgh -- Sales growth fueled in part by the opening of 25 new branded stores did not prevent Dick’s Sporting Goods from reporting a slight decline in net income during the third quarter of fiscal 2013. Net income totaled about $50 million, down incrementally from $50.1 million a year earlier.

Net sales totaled $1.4 billion, up 7% from $1.31 billion. Consolidated same-store sales rose 0.3%, beating company estimates of a 2-3% decline.

In addition to opening 25 new Dick’s stores during the quarter, the retailer also one opened new Golf Galaxy store and two new Field & Stream stores. Dick’s also relocated one Dick’s Sporting Goods store, repositioned one Golf Galaxy store and completed three full and 22 apparel remodels of Dick’s Sporting Goods stores. As of November 2, 2013, the Company operated 552 Dick’sSporting Goods stores in 45 states, with approximately 29.9 million square feet and 82 Golf Galaxy stores in 30 states, with approximately 1.4 million square feet.

"Despite the continued challenging consumer environment, we delivered better than expected results in the third quarter, exceeding both our sales and earnings expectations,” said Edward W. Stack, chairman and CEO. “The marketing efforts, improved customer experience and selective pricing initiatives we began in the third quarter were successful in driving traffic and sales, but at slightly lower than anticipated margins. We remain excited about the long-term opportunities in our business that we presented at our analyst day in September, and we will continue to drive towards those goals."

Consolidated same-store sales are expected to grow 2-3% during the fourth quarter of fiscal 2013 and have flat to 1% growth for the full fiscal year.



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