Dick's Sporting Goods is again raising expectations for itself as well as the industry after reporting that total sales for the fiscal fourth quarter ended January 31 increased 20% to $474.4 million from with $395.2 million in the year-ago period. Comparable store sales increased 4.6% on top of a 4.9% comp store sales increase in the year-ago quarter.
Due to the better-than-expected sales for Q4, DKS increased EPS guidance for the quarter to 98 cents to 99 cents per diluted share, up from previous guidance of 91 cents to 92 cents per share and 19.5% to 20.7% above last years Q4 earnings of 82 cents per share. Full year earnings expectations have increased as well, with EPS now seen in the range of $2.08 to $2.09 per diluted share, which would be an increase of 11.2% to 14.8% over the previous years $1.87 per diluted share contribution for the year. Previous guidance was in the $1.99 – $2.00 per diluted share range.
The DKS board also approved a two-for-one stock split of the company's common shares for all stock holders of record on March 19, 2004. The share price of the Company's common stock on the NYSE rose more than 160% in calendar 2003 and more than 340% from its IPO price in October, 2002.
Additionally, the company said it plans to offer $125 million in 20-year convertible senior notes, with an over-allotment option of up to $18.75 million. The proceeds are expected to be used for the net cost of a convertible bond hedge in connection with the notes and a separate warrant transaction, with remaining proceeds to be used for general purposes.
DKS shares were up 11% for the week to close at $58.19 on Friday.