Dick’s Q2 profit leaps 32%
Pittsburgh Dick’s Sporting Goods reported Thursday that second-quarter net income jumped 32% to $51.5 million, compared with $38.9 million a year earlier.
Revenue grew 9% to $1.23 billion, beating Wall Street expectations of $1.22 billion in revenue.
Same-store sales climbed 5.6% at Dick’s Sporting Goods locations and rose 2.9% at its Golf Galaxy stores. In contrast, that measure fell 3.2% in last year’s second quarter at Dick’s locations and plummeted 11.1% at Golf Galaxy stores.
As of July 31, the company operated 425 Dick’s Sporting Goods stores in 42 states and 91 Golf Galaxy stores in 31 states, but said it plans to close 12 underperforming Golf Galaxy stores in the third quarter.
Deloitte Consumer Spending Index down 4.45%
NEW YORK The Deloitte Consumer Spending Index fell to 4.45%, from an upwardly revised gain of 4.63% a month ago. According to the company, the Index experienced its third straight month of decline in July, due in large part to weakness in the housing market.
“American households continue to be cautious about spending while economic growth continues to be uneven,” said Alison Paul, vice chairman and Deloitte’s retail leader in the United States. “At the same time, consumers economized over the past two years and likely have pent up demand for goods they have foregone. Retailers should consider strategies to stay nimble amid shifts in consumer behavior in the months ahead. Customer data and business analytics may be particularly valuable for retailers to hone pricing, merchandise and promotions that attract their target consumers.”
Limited Brands posts earnings gains
COLUMBUS, Ohio Limited Brands reported that adjusted earnings per share for the second quarter ended July 31, were 36 cents compared with 19 cents for the quarter ended Aug. 1, 2009, which exclude certain significant items in both years as detailed below.
The company reported a comparable store sales increase of 7% for the second quarter ended July 31, compared with the second quarter ended Aug. 1, 2009. The company reported net sales of $2.243 billion for the second quarter, compared with sales of $2.067 billion last year.
The company stated that it expects 2010 third quarter earnings per share to be 3 cents to 8 cents compared with adjusted earnings per share of 2 cents per share last year. The company now expects August comparable-store sales to increase in the mid to high single digit range versus its previous guidance for a low single digit increase.
For 2010, the company increased its adjusted earnings per share forecast to $1.68 to $1.83 from $1.60 to $1.80 previously.