Dick's Sporting Goods Inc. is boosting its fourth quarter estimates for sales and profit after a surge in Holiday sales. With one week left in the retail fiscal year, DKS is now forecasting EPS of “at least” 54 cents a share, up from its previous estimate of 41 cents to 46 cents a share, and far outpacing the Wall Street consensus 49 cents a share. Comp store sales are expected to improve 2% for the quarter, a dramatic sharp reversal of fortunes versus the retailer’s November forecast of a decline of 6% to 4% for the quarter. Comparable store sales declined 8.6% in the fourth quarter of 2008.
Company Chairman and CEO Ed Stack said that same-store sales had been running at a negative double-digit pace since mid-October when they provided their last forecast. He said they saw an improvement in same store sales beginning the final week of November. “The better than expected comparable sales were seen across all major categories,” he said.
DKS now anticipates reporting consolidated earnings per diluted share of at least $1.17 for the full fiscal year, excluding merger and integration costs, or at least $1.12 per share on a GAAP basis. Comparable store sales are currently expected to decrease approximately 2% compared to the company's previous expectation of a decline of approximately 4% to 3%. Comparable store sales declined 4.8% in 2008.
