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UPDATE 1-Dick's Sporting sees FY profit largely below estimates
August 14, 2012 / 3:12 PM / in 5 years

UPDATE 1-Dick's Sporting sees FY profit largely below estimates

* Second-quarter earnings/share $0.65 vs est $0.64

* Second-quarter sales $1.44 bln, in line with estimates

* Sees third-quarter profit/share $0.36, in line

* Raises full-year earnings/share view to $2.47-$2.51

By Aditi Shrivastava

Aug 14 (Reuters) - Dick’s Sporting Goods Inc, the largest publicly traded U.S. sports goods retailer, reported a better-than-expected quarterly profit on higher sales, but forecast full-year earnings largely below Wall Street expectations.

The company raised its 2012 forecast for the second time in three months and now expects per-share earnings of $2.47 to $2.51 during the year, up from its earlier range of $2.45 to $2.48.

Analysts were expecting earnings of $2.51 per share, according to Thomson Reuters I/B/E/S.

Dick’s has always been conservative with their profit forecast and investors were expecting a bigger raise because of a recent share buy-back, analyst Paul Swinand of Morningstar Inc told Reuters.

Dick‘s, which sells footwear, gear and apparel of brands such as Nike, Adidas and Under Armour, said in January it planned to repurchase shares worth $200 million.

Analyst Swinand also expects the company’s sales to be boosted by demand for products such as sneakers and jerseys in the back-to-school season.

In a statement, CEO Edward Stack outlined plans to open new stores and improve margins by managing its inventory as well as selling more high-margin products.

The company’s third-quarter profit forecast of 36 cents per share was in line with estimates.

Second-quarter earnings fell to $53.7 million, or 43 cents per share, from $73.8 million, or 59 cents per share, a year earlier.

On an adjusted basis, the company earned 65 cents per share, 1 cent above analysts’ average estimate.

Revenue rose 10 percent to $1.44 billion, in line with estimates.

The company, which operates 490 namesake and 81 Golf Galaxy stores, said same-store sales, or sales at stores open for at least a year, rose 3.8 percent.

Comparable sales at Dick’s Sporting stores were up 2.9 percent, while those at Golf Galaxy stores rose 4.4 percent and eCommerce sales jumped 36.4 percent.

Shares of the Pittsburgh-based company were down 2.5 percent at $49.33 in morning trade on Tuesday on the New York Stock Exchange. They touched a low of $47.92.

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