PITTSBURGH, Penn. (BRAIN) — Dick's Sporting Goods has posted its sales and earnings for the third quarter of 2017, which ended Oct. 28. The company's net income for the quarter was $36.9 million or 35 cents per share, exceeding expectations of 22 to 30 cents per share. The sporting goods retailer's net sales also increased 7.4 percent to approximately $1.94 billion in the third quarter, while consolidated same-store earnings fell 0.9 percent over the same period in 2016, when those sales were up 5.2 percent.
E-commerce sales continue to be strong for the retailer, increasing about 16 percent and comprising 10.3 percent of total net sales, compared with 9.6 percent for the third quarter of 2016. But the company's earning were down 24.5 percent from a net income of $48.9 million or 44 cents, over the same quarter in 2016.
"In the third quarter, we delivered earnings per diluted share and comp sales at the high end of our expectations, with continued double-digit growth in e-commerce. As expected, margins were under pressure in this highly promotional environment, but our strategy for this environment enabled us to continue to capture market share," said Edward W. Stack, Dick's chairman and CEO. "As we look to the fourth quarter, we are comfortable with our prior implied sales and earnings outlook, and believe we are well positioned to gain additional market share."
"Looking ahead, we see tremendous opportunity in our industry as it continues to evolve. We plan to make significant investments in our business, which will have a short-term negative impact on our earnings; however, we expect these investments will pay meaningful dividends in the future. We plan to increase investments in our eCommerce business, the technology in our stores and store payroll in order to enhance the customer experience," Stack continued.
"Meaningful investments will also be made to Dick's Team Sports HQ, and in the development and support of our private brands. Given these investments, continued gross margin pressure and approximately flat comp sales, we expect earnings per diluted share to decline by as much as 20 percent in 2018."
The company opened 15 new Dick's Sporting Goods stores and six Field & Stream stores, while closing two specialty concept stores, during the third quarter. It now operates 719 Dick's stores in 47 states, and sells bikes from GT, Mongoose, Schwinn and others. The company recently ended its contract with Accell North America and will not continue to sell Diamondback bikes in its stores.
