Dick's Sporting Goods (DKS) Tops Q3 EPS by 3c; Guides Above Views

Dick's Sporting Goods (NYSE: DKS) reported Q3 EPS of $0.30, $0.03 better than the analyst estimate of $0.27. Revenue for the quarter came in at $1.94 billion versus the consensus estimate of $1.89 billion.

Consolidated same-store sales decreased 0.9%, compared to the Company's guidance of a low single-digit decrease. Third quarter 2016 consolidated same-store sales increased 5.2%.

"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 eCommerce. 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, Chairman and Chief Executive Officer. "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."

Mr. Stack continued, "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. 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."

Q4 GUIDANCE:

Dick's Sporting Goods sees non-GAAP Q4 EPS of $1.12-$1.24, versus the consensus of $1.12.

2017 GUIDANCE:

Dick's Sporting Goods sees non-GAAP FY2017 EPS of $2.92-$3.04. Dick's Sporting Goods sees FY2017 revenue of $2.88 billion.

Consolidated same store sales are currently expected to be in the range of approximately flat to a low single-digit decline on a 52 week to 52 week comparative basis, compared to an increase of 3.5% in 2016.

For earnings history and earnings-related data on Dick's Sporting Goods (DKS) click here.

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