Dick's Sporting Goods, Inc. increased its fourth quarter guidance due to better-than-anticipated same-store sales and merchandise margin, partially offset by higher incentive compensation.
Consolidated same-store sales, adjusted for the shifted calendar, due to the 53rd week in fiscal 2012, climbed approximately 7 percent, or approximately 6 percent on an unshifted basis, in the quarter. The results compare to guidance provided on Nov. 19 calling for a 3 percent to 4 percent comp increase, or a 2 percent to 3 percent increase on an unshifted basis.
EPS is now expected to arrive in the range of $1.10 to $1.11 for the fourth quarter ended Feb. 1, compared to previous guidance of $1.04 to $1.07. In the 2012 fourth quarter, it earned $1.03, including a boost of 3 cents per share due the 14th week in the year-ago quarter.
The guidance includes approximately a penny per diluted share benefit attributable to share repurchases in the fourth quarter of 2013 totaling $150 million.
“Even with the cautious consumer environment and a shorter and promotional holiday season, we generated sales well above our original expectations, maintained merchandise margin levels consistent with last year and leveraged SG&A,” said Ed Stack, chairman and CEO. “We enter 2014 with a robust and growing omni-channel network and exciting merchandising opportunities, which we believe will translate into double-digit earnings growth.”
For the full year, EPS is expected in the range of 2.68 to $2.69, compared to previous guidance of $2.62 to $2.65 and ahead of year-ago earnings of $2.53. Comps on a 52-week to 52-week comparative basis increased approximately 1.9 percent.
Full results will be reported in March.
