LONDON, UK / ACCESSWIRE / December 27, 2017 / Active-Investors.com has just released a free earnings report on Dick's Sporting Goods, Inc. (NYSE: DKS) ("DKS"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=DKS. The Company reported its third quarter fiscal 2017 operating results on November 14, 2017. The sporting goods retailer's sales grew 7.4% on a y-o-y basis, and also provided guidance for the upcoming quarter and fiscal year. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Dick's Sporting Goods most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
www.active-investors.com/registration-sg/'symbol=DKS
Earnings Highlights and Summary
For the third quarter ended October 28, 2017, DKS' net sales increased 7.4% to approximately $1.94 billion compared to $1.81 billion in Q3 2016, while consolidated same store sales decreased 0.9%. The Company's revenue numbers topped analysts' expectations of $1.89 billion.
During Q3 2017, DKS' gross profit totaled $534.1 million, or 27.47% of sales, down 307 basis points compared to the year ago same period, and was attributed to lower merchandise margins in a promotional marketplace. In addition, the Company observed low occupancy deleverage, higher shipping, and fulfillment costs as a percentage of sales.
For Q3 2017, DKS reported a consolidated net income of $36.9 million, or $0.35 per diluted share, compared to the Company's expectations provided on August 15, 2017, of $0.22 to 0.30 per diluted share, and to a consolidated net income of $48.9 million, or $0.44 per diluted share, for the third quarter ended October 29, 2016.
On a non-GAAP basis, the Company reported a consolidated net income of $31.9 million, or $0.30 per diluted share, for Q3 2017 compared to consolidated net income of $53.6 million, or $0.48 per diluted share, for Q3 2017. The Company's earnings beat Wall Street's estimates of $0.26 per share.
Omni-Channel Development
DKS' ecommerce sales increased approximately 16% for Q3 2017. The Company's ecommerce penetration was 10.3% of total net sales for the reported quarter compared to 9.6% during Q3 2016.
In the reported quarter, the Company opened 15 new DICK'S Sporting Goods stores and six new Field & Stream stores. DKS also closed two specialty concept stores. As of October 28, 2017, the Company operated 719 DICK'S Sporting Goods stores in 47 states, with approximately 38.2 million square feet; 98 Golf Galaxy stores in 32 states, with approximately 2.1 million square feet; and 35 Field & Stream stores in 16 states, with approximately 1.6 million square feet.
Balance Sheet
DKS ended Q3 2017 with approximately $112 million in cash and cash equivalents and approximately $455 million in outstanding borrowings under its revolving credit facility. The Company's total inventory increased 4.1% on a y-o-y basis at the end of Q3 2017.
Capital Allocation
On November 09, 2017, the Company's Board of Directors authorized and declared a quarterly dividend of $0.17 per share on its Common Stock and Class B Common Stock. The dividend is payable in cash on December 29, 2017, to stockholders of record at the close of business on December 08, 2017.
During Q3 2017, DKS repurchased approximately 2.9 million shares of its common stock at an average cost of $26.57 per share, for a total cost of $76 million. During the fiscal year 2017, the Company repurchased approximately 6.8 million shares of its common stock at an average cost of $35.70 per share, for a total cost of $242 million, and has approximately $0.8 billion remaining under its authorization that extends through 2021.
Outlook
For the fourth quarter of the fiscal year 2017, based on low single-digit negative consolidated same-store sales, DKS is forecasting non-GAAP earnings per share (EPS) of between $1.12 and $1.24. The Company's operating margins are expected to decline y-o-y for the upcoming quarter, driven by an anticipated decline in gross margin.
For the full fiscal year 2017, DKS is estimating non-GAAP diluted EPS to be in the band of $2.92 to $3.04, which includes approximately $0.05 coming from the 53rd week. The Company is estimating consolidated FY17 same-store sales to be flat to low single-digit negative.
Stock Performance Snapshot
December 26, 2017 - At Tuesday's closing bell, Dick's Sporting Goods' stock climbed 2.56%, ending the trading session at $30.43.
Volume traded for the day: 2.15 million shares.
Stock performance in the last month - up 9.22%; and previous three-month period - up 10.21%
After yesterday's close, Dick's Sporting Goods' market cap was at $3.32 billion.
Price to Earnings (P/E) ratio was at 11.22.
The stock has a dividend yield of 2.23%.
The stock is part of the Services sector, categorized under the Sporting Goods Stores industry. This sector was flat at the end of the session.
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