Pittsburgh Dick’s Sporting Goods reported a modest improvement in fourth-quarter profits and solid sales growth due to new store openings and a 2.5% increase in same-store sales.
Total fourth-quarter sales increased 10.7% to $1.3 billion, and net income, adjusted to exclude prior-year charges related to asset impairment, merger and integration costs, increased 8.3% to $67.4 million.
Chairman and CEO Ed Stack said that although 2009 was challenging, the company successfully generated more sales, managed inventory levels and exercised financial discipline.
“As a result, we generated higher profits, leveraged expenses, further strengthened our balance sheet and believe we gained market share in 2009,” Stack said.
The company opened a total of 24 new stores throughout 2009 and ended the year with a total of 510 units, consisting of 419 Dick’s Sporting Goods stores, and 91 Golf Galaxy stores. This year the company plans to open at least 24 Dick’s stores and five Golf Galaxy stores.
Dick’s ended the year with $225 million in cash on its balance sheet and no borrowings under it credit facility. Expectations for first quarter same-store sales call for an increase in the range of 2% to 3%, versus a 6.1% decline during first quarter 2009.