Dick's Sporting Goods Sees Higher Than Expected Quarterly Sales

Dick's Plans To Open 24  New Stores Next Year

Dick's Sporting Goods for Q2 ended August 1 reported "higher than expected sales from four newly opened stores and the Internet," as quarterly sales rose 3.7% to $1.13B from $1.09B a year ago, according to Joe Napsha of the Pittsburgh TRIBUNE-REVIEW. Sales at Dick's stores open at least a year fell 3.2% compared to last year. Dick's net income for the quarter "fell slightly compared with the same period a year ago, as same-store sales declined" by 4.1%, "primarily because of an 11[%] drop at its Golf Galaxy stores." Dick's net income fell to $38.9M ($0.33 per share), down 2.5% from $39.9M ($0.38 per share) in the year-ago period. Dick's Chair & CEO Edward Stack said that while Golf Galaxy sales were down, they "did better in the second quarter than the first quarter." Meanwhile, Stack said that the company "plans to open 24 new stores in 2010 but does not anticipate accelerating that expansion," adding to its 409 existing Dick's stores and 91 Golf Galaxy stores (Pittsburgh TRIBUNE-REVIEW, 8/21). Stack said, "We think the consumer is still cautious out there, although we're seeing sequential improvement from our first quarter and into the second quarter. So we're cautiously optimistic at the present time. ... Even though the total golf business is difficult, we feel we're picking up marketshare in the golf business" ("Fast Money," CNBC, 8/21). At presstime, Dick's shares are trading at $21.26, down 2.0% from Thursday's close at $21.69 (THE DAILY).

BEATING EXPECTATIONS: The ORANGE COUNTY BUSINESS JOURNAL's Michael Lyster reported Pacific Sunwear of California Inc. reported a "better than expected loss and sales for the recently ended quarter but warned its loss for the current quarter could come in higher" than expected. Pacific Sunwear for the quarter ended August 2 reported a loss of $14.2M, "better than the $15[M] analysts projected," and sales totaled $243M, "ahead of the $239[M] Wall Street was expecting" (OCBJ.com, 8/20). At presstime, Pacific Sunwear shares are trading at $3.56, down 10.8% from Thursday's close at $3.99 (THE DAILY).