Dick's Sporting Goods, Inc. reported that net sales for the quarter ended January 31, 2004 increased 20% to $474.4 million compared with $395.2 million for the quarter ended February 1, 2003. Comparable store sales increased 4.6%.
Due to better-than-expected fourth quarter sales, the Company is increasing EPS guidance for the fourth quarter to a range of $0.98 — 0.99 per diluted share based on an estimated 25.9 million fully-diluted shares outstanding compared to $0.82 per diluted share for the quarter ended February 1, 2003, or $0.88 per diluted share pro-forma in the fourth quarter of last year which included a non-cash after-tax charge against an investment of $1.4 million, or $0.06 per diluted share. The Company's previous guidance was $0.91 — 0.92 per diluted share.
Accordingly, the Company is increasing EPS guidance for the full year to a range of $2.08 to 2.09 per diluted share based on an estimated 25.1 million fully-diluted shares outstanding compared to $1.87 per diluted share for the year ended February 1, 2003, or $1.78 per diluted share pro-forma last year which included a reduction of interest expense and an increase in diluted shares as if the Company had consummated its initial public offering at the beginning of the first quarter last year rather than on the October 15, 2002 effective date, and excludes the non-cash charge taken in the fourth quarter last year as discussed above. The Company's previous guidance was $1.99 – 2.00 per diluted share.
“The associates at Dick's continued to execute in the fourth quarter as evidenced by a 4.6% comp sales gain despite a difficult comparison with the prior year,” said Edward W. Stack, Chairman and CEO. “We were able to execute effectively throughout our organization, taking advantage of the colder weather as it developed in the Eastern U.S.”
The Company also announced that its Board of Directors has approved a two-for-one stock split of the Company's common shares. The split will be effected by issuing our record holders one additional share of common stock for every share of common stock held, and one additional share of Class B common stock for every share of Class B common stock held on the record date of March 19, 2004. We expect that the additional shares will be distributed on or about April 5, 2004.
“We believe that the split will make the Company's stock even more accessible and attractive to a broader range of investors. Our decision further demonstrates the confidence of our Board of Directors and management in both the strong fundamentals and growth potential of our business,” said Edward W. Stack, Chairman and CEO.
The share price of the Company's common stock on the New York Stock Exchange rose more than 160% in calendar 2003 and more than 340% from its IPO price in October, 2002.
The Company expects to report earnings for the fourth quarter and fiscal year ending January 31, 2004 on March 11, 2004.
