Dick's Sporting Goods, Inc. has increased its fiscal fourth quarter and full year 2013 expectations after reporting that fiscal fourth quarter 2013 consolidated same-store sales exceeded expectations. The company is also providing preliminary earnings guidance for fiscal 2014.
Dick's Sporting Goods, Inc. now expects consolidated earnings per diluted share of approximately $1.10 to $1.11 for the fourth quarter of 2013 ended Feb. 1, 2014, compared to guidance of $1.04 to $1.07 provided on November 19, 2013. For the fourth quarter of 2012, consolidated earnings per diluted share were $1.03. The 14th week in the fourth quarter of fiscal 2012 contributed approximately 3 cents to earnings per diluted share.
Consolidated same-store sales, adjusted for the shifted calendar, due to the 53rd week in fiscal 2012, increased approximately 7 percent, or approximately 6 percent on an unshifted basis, in the fourth quarter of 2013. The same-store sales results compare to guidance provided on November 19, 2013 for a 3 percent to 4 percent increase, or a 2 percent to 3 percent increase on an unshifted basis. Consolidated same-store sales increased 1.2 percent in the fourth quarter of 2012.
The improved outlook was said to be due to better-than-anticipated fourth quarter same-store sales and merchandise margin, partially offset by higher incentive compensation. The fourth quarter earnings guidance includes approximately a penny per diluted share benefit attributable to share repurchases in the fourth quarter of 2013 totaling $150 million.
"Even with the cautious consumer environment and a shorter and promotional holiday season, we generated sales well above our original expectations, maintained merchandise margin levels consistent with last year and leveraged SG&A," said Ed Stack, chairman and CEO. "We enter 2014 with a robust and growing omni-channel network and exciting merchandising opportunities, which we believe will translate into double-digit earnings growth."
Fiscal Full Year 2013 Results
Dick's Sporting Goods, Inc. now expects consolidated non-GAAP earnings per diluted share of approximately $2.68 to $2.69 for the fiscal year ended February 1, 2014, compared to guidance of $2.62 to $2.65 provided on November 19, 2013. For the 53 weeks ended February 2, 2013, the retailer reported consolidated non-GAAP earnings per diluted share of $2.53, excluding an impairment charge. The 53rd week in fiscal 2012 contributed approximately 3 cents to earnings per diluted share.
Consolidated same store sales on a 52-week to 52-week comparative basis increased approximately 1.9 percent, compared to guidance of approximately flat to an increase of 1 percent provided on November 19, 2013, and to a 4.3 percent increase in fiscal 2012.
Current 2014 Outlook
The company's current outlook for 2014 is based on current expectations and includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although the company believes that the expectations and other comments reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations or comments will prove to be correct.
Based on an estimated 124 million diluted shares outstanding, the DKS currently anticipates reporting consolidated earnings per diluted share of approximately $3.03 to $3.08 for fiscal 2014.
In accordance with standard practice, greater detail on the company's fourth quarter and full year 2013 results along with 2014 expectations will be provided in the fourth quarter 2013 earnings announcement expected in March 2014.