The shortened holiday season and cold weather that hurt many retailers didn’t faze Dick’s Sporting Good, where same-store sales are expected to be double what the company originally forecast.
The nation’s largest sporting goods retailer said same-store sales adjusted to account for a shift in the reporting calendar increased 6% compared to expectations of a 2% to 3% increase.
"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 Edward W. Stack, chairman and CEO of Dick’s Sporting Goods. "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."
With better-than-expected sales, Dick’s said it fourth-quarter earnings would total between $1.10 to $1.11 compared to earlier guidance of $1.04 to $1.07 provided on Nov. 19, 2013. Full-year profits are expected to range from $2.68 to 2.69 for the fiscal year ended Feb. 1, 2014 compared to guidance of $2.62 to 2.65.
For the coming year, Dick’s said it expects profits to increase to a range of $3.03 to 3.08.
The company offered no details on why it’s business was so much stronger than planned, but said additional details would be available when results are officially disclosed at some point in March.