Dick’s Sporting Goods, Inc. announced that net sales for the 13-week period ended February 1, 2003 increased 16.1% to $395.2 million compared with $340.5 million for the comparable 13-week period ended February 2, 2002. Comparable store sales increased 4.9% for the 13-week period ended February 1, 2003.
The Company said that, due to better-than-expected fourth quarter sales and margin rates, EPS guidance is being increased to a range of $0.80 to $0.81 per diluted share for the fiscal fourth quarter, based on an estimated 23.3 million fully diluted shares outstanding compared to pro-forma $0.59 per share for the same period last year. The Company’s previous guidance was $0.63 to $0.64 per diluted share.
Accordingly, the Company is increasing the EPS guidance for the full year for pro-forma EPS to the range of $1.70 to $1.71 per diluted share for the full fiscal year 2002, which ended February 1, 2003 as compared to pro-forma $1.12 per fully diluted share for 2001, which ended February 2, 2002. Previously, the Company’s guidance was pro-forma $1.52 to $1.53 per diluted share. Pro-forma results include 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 each period rather than on the October 15, 2002 effective date.
The Company also announced that the revised guidance includes a $2.4 million charge against the Company’s non-cash investment in its third party Internet commerce service provider due to a decline in the value of that company’s publicly traded stock. The Company had converted a royalty arrangement with that provider into an equity investment that resulted in this non-cash investment which is more fully described in the Company’s final prospectus dated October 15, 2002. This charge, after the tax effect, will result in a reduction of net income of $1.4 million or $0.06 per diluted share. Excluding this charge, the Company said its EPS guidance would be $0.86 to $0.87 per diluted share for the fiscal fourth quarter and pro-forma $1.76 to $1.77 per diluted share for the full fiscal year 2002.
“We are pleased to have produced such strong sales results in what has been recognized as a very challenging holiday period. We executed effectively, taking full advantage of the favorable weather conditions we experienced throughout most of our markets. We have again this quarter experienced improvement in our gross margin as we continue to increase our industry-leading inventory turns,” said Edward W. Stack, Chairman and CEO.
