DICK'S SPORTING GOODS

(DICK'S SPORTING GOODS)

Dick's Sporting Soars on Bullish 4Q Outlook

By Earnings FOXBusiness

Dick’s Sporting Goods (DKS) projected fourth-quarter earnings on Monday that would exceed Wall Street’s expectations as the retailer enjoyed strong holiday sales and merchandise margins.

Continue Reading Below

Shares of the sporting goods chain rallied about 6% on the upbeat news.

Dick’s said it expects to post a profit of $1.10 to $1.11 a share for the fourth quarter, compared with its earlier call for EPS of $1.04 to $1.07. Even the low end of the new range would trump the Street’s view of $1.06.

Same-store sales climbed about 7% last quarter on an adjusted basis that accounts for the shifted calendar, or around 6% on an unshifted basis.

Dick’s cited stronger-than-expected sales and merchandise margins that were offset by higher incentive compensation.

“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," Dick’s CEO Edward Stack said in a statement.

Continue Reading Below

Dick’s also sees 2014 EPS of $3.03 to $3.08, compared with forecasts from analysts for $3.10.

"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,” Stack said.

Shares of Dick's climbed 5.68% to $54.00 Monday morning, trimming their 2014 slump to 7.5%.

Dick’s is scheduled to report comprehensive quarterly results on March 10.