Dick's Sporting Goods, Inc. slightly narrowed its guidance for Q4 earnings and slightly lower its same-store outlook due to the impact of warmer than usual weather seen across the country this winter. It expects non-GAAP EPS in the range of 87 to 88 cents a share, down from its original guidance of 87 to 89 cents a share given on Nov. 15.
For the full year, it now expects non-GAAP EPS in the range of $2.01 to
2.02, down from $$2.01 to
2.03 previously. Non-GAAP earnings per diluted share exclude a gain on
sale of investment and the favorable impact of lower litigation
settlement costs.
The company also expects fourth quarter 2011 consolidated same store
sales to be slightly negative to slightly positive compared to the
original outlook of flat to an increase of 1 percent. This outlook comes on top
of a 9.3 percent increase in consolidated same store sales in the fourth
quarter of 2010.
The consolidated same store sales for the full year
2011 are expected to approach 2 percent, the same as the previous outlook of
approximately 2 percent. That compares to an increase of 7.2 percent in fiscal 2010.
“At the time of our third quarter earnings announcement we noted that
our guidance was predicated on normal winter weather patterns,” said
Edward W. Stack, chairman and CEO. “While the warmer- and
drier-than-normal winter has impacted our same store sales and inventory
levels, sales and gross margin pressure has been minimized due to
better than anticipated operating leverage, resulting in anticipated
full year EPS growth of 23 to 24 percent.”
In accordance with standard practice, the company's fourth quarter and
full year 2011 results along with additional detail regarding 2012
expectations will be provided in the March 2012 fourth quarter and full
year 2011 earnings announcement.
Dick's SG also announced that its board authorized a share repurchase program of up to $200 million of the company's common stock over the next 12 months. The repurchase program is designed to offset the dilutive effect of the issuance of shares expected in connection with the expiration in 2013 of a substantial number of stock options issued following the company's 2002 initial public offering, which are anticipated to be exercised in 2012. The company will finance the repurchases from cash on hand.
The repurchases, which may be made in privately-negotiated transactions or in the open market as permitted by Securities Exchange Act Rule 10b-18, including pursuant to a Securities Exchange Act Rule 10b5-1 repurchase plan, could begin immediately and may occur from time-to-time in the future. The company may suspend or discontinue this repurchase program at any time.
