Dick's Sporting Goods, Inc. (DKS) reported Thursday a significant increase in third-quarter profit, reflecting mainly a 7.1% growth in net sales as well as a decline in interest expense. The company also provided earnings per share outlook for the fourth quarter and raised its non-GAAP earnings projection for the full year. The Pittsburgh, Pennsylvania-based company's net income for the third quarter surged to $18.85 million or $0.16 per share from $6.18 million or $0.05 per share in the previous year. On average, 26 analysts polled by Thomson Reuters expected the company to report earnings of $0.09 per share for the quarter. Analysts' estimate typically exclude special items. In its second quarter, the company's net income slipped to $38.9 million or $0.33 per share from $39.9 million or $0.34 per share in the prior-year quarter and net sales for the quarter under review increased 3.7% to $1.13 billion from $1.10 billion. Net sales for the third quarter grew 7.1% to $989.82 million from $924.19 million in the same quarter last year. Twenty analysts had a consensus revenue estimate of $961.52 million for the quarter.
The increase in sales was mainly due to a 1.9% increase in consolidated comparable store sales, the opening of new stores and the addition of e-commerce sales. According to the company, the 1.9% consolidated same store sales increase consisted of a 2.2% increase in Dick's Sporting Goods stores and a 1.5% decline in Golf Galaxy stores. Consolidated same store sales increased 1.9%, better than previous estimate of a 6% to 4% decline, the company said.
Edward Stack, chairman and chief executive officer said, "While we are pleased with the year-over-year growth in sales and operating margin generated in the third quarter, we believe we benefited from a shift of cold weather product sales from the fourth quarter to the third quarter as a result of colder weather conditions relative to last year." Income from operations increased to $31.76 million from $13.6 million a year ago. Interest expense for the quarter dropped to $173 thousand from $4.92 million in the comparable quarter last year. In the third quarter, the sporting goods retailer said it opened 11 Dick's Sporting Goods stores and relocated one Dick's Sporting Goods store.
For the nine-month period, the company's net income increased to $68 million or $0.58 per share from $65.73 million or $0.56 per share in the previous year. Consolidated non-GAAP net income was $74.07 million or $0.63 per share, compared to a non-GAAP net income of $72 million or $0.62 per share in same period in 2008. Net sales for the period grew 5.3% to $3.08 billion from $2.92 billion in the prior-year period.
In the first three quarters of 2009, the company said it opened 24 new Dick's Sporting Goods stores, relocated one Dick's Sporting Goods store, opened one new Golf Galaxy store, converted the Golf Shop to a Golf Galaxy store, closed two Chick's Sporting Goods stores and converted the remaining Chick's Sporting Goods stores to Dick's Sporting Goods stores. At the end of the period, the company operated 420 Dick's Sporting Goods stores in 40 states, with nearly 23.4 million square feet and 91 Golf Galaxy stores in 31 states, with about 1.5 million square feet. Looking ahead to the fourth quarter, Dick's Sporting expects earnings per share of about $0.41 - $0.46. Analysts expect fourth-quarter earnings per share of $0.57. Comparable store sales for the fourth quarter are expected to decrease about 6% to 4% compared to an 8.6% decrease in the fourth quarter last year. "Looking to the fourth quarter, our estimates take into consideration the shift of cold weather product sales from the fourth quarter into the third quarter, planned increased advertising spend and the anniversary of higher levels of guns and ammo sales. Our estimates also recognize the continued uncertain consumer environment, particularly as we head into our largest quarter of the year," added Stack. For the full year 2009, on a GAAP basis, the company anticipates reporting consolidated earnings per share of about $0.99 - $1.04. Meanwhile, the company raised its non-GAAP earnings per share range to $1.04 to $1.09, from the previous forecast of $1.02 to $1.07 per share. Street analysts currently estimate earnings of $1.13 per share for the year. Comparable store sales for the year is currently expected to decrease about 4% to 3%, compared to a 4.8% decrease in 2008. DKS closed Wednesday's regular trading at $24.82 on the NYSE. In the past 52 weeks, the shares have been trading in a range of $9.21 - $26, with a three-month average volume of 1.83 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.