DICK'S Sporting Goods Issues Guidance; Q4 Profit Misses Estimates

(RTTNews) - DICK'S Sporting Goods, Inc. (DKS), the largest U.S. based full-line omni-channel sporting goods retailer, announced the company currently anticipates reporting consolidated earnings per share of approximately $2.85 to $3.00 in fiscal 2016. The company's consolidated earnings per share guidance includes the expectation of approximately $100 to 200 million of share repurchases in 2016. Analysts polled by Thomson Reuters expect the company to report profit per share of $3.23 for 2016. Analysts' estimates typically exclude special items.

The company currently expects consolidated same store sales to be approximately flat to an increase of 2% in full year 2016. The company expects to open approximately 36 new DICK'S Sporting Goods stores and relocate approximately nine DICK'S Sporting Goods stores in 2016.

For the first-quarter of 2016, the company currently anticipates reporting consolidated earnings per share of approximately $0.48 to 0.50. Consolidated same store sales are currently expected to be approximately flat to an increase of 1% in the first quarter of 2016. Analysts expect the company to report profit per share of $0.54 for the quarter.

Edward Stack, CEO, stated: "In 2016, we will continue to make strategic investments in our business to grow our leadership position in the industry and build meaningful momentum for 2017 and beyond. These investments are expected to have an approximate $50 to 55 million impact on earnings in 2016 and include enhancing the shopping experience in our stores, building brand equity in a significant way through our partnership with the United States Olympic Committee and Team U.S.A. and transitioning our eCommerce business to our own platform."

The company reported consolidated net income for the fourth quarter ended January 30, 2016 of $129.0 million, or $1.13 per share, compared to $155.5 million, or $1.30 per share, prior year. On average, 27 analysts polled by Thomson Reuters expected the company to report profit per share of $1.15 for the quarter. Analysts' estimates typically exclude special items.

Net sales for the fourth quarter of 2015 increased 3.7% to approximately $2.24 billion. Consolidated same store sales decreased 2.5%. Same store sales for DICK'S Sporting Goods decreased 2.5%, while Golf Galaxy decreased 5.8%. Analysts expected revenue of $2.28 billion, for the quarter.