Dick’s Comps Drop 8.6% In Q4

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• March 10 2009
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Dick’s Sporting Goods Inc. reported a fourth-quarter 2008 loss of $104 million, or 93 cents per share, down from a profit of $73 million, or 62 cents per share, for the same period last year.

The Findlay, Pennsylvania based company’s sales fell 0.4 percent in Q4, to $1.2 billion, mainly due to an 8.6 percent drop in comps, which were offset by the opening of new stores, according to the release.

Dick’s (NYSE:DKS) adjusted earnings were 55 cents per share, excluding an impairment charge for its acquisition of Golf Galaxy and Chick’s Sporting Goods.

Analysts had expected earnings per share of 54 cents in the fourth quarter, according to FactSet Research.

“We continued to execute well in the fourth quarter in spite of the challenging environment. We ended the quarter without any balance outstanding on our line of credit, which is an indication of our strong cash flow and balance sheet position. Additionally, we successfully reduced inventory levels and leveraged S,G & A expenses,” said Edward W. Stack, Chairman and CEO. “As we plan our business for 2009, we are not anticipating any improvement in the macro economic conditions compared to what we experienced in the fourth quarter. We will continue to remain focused on servicing core athletes and outdoor enthusiasts, carefully managing inventory levels, tightly controlling expenses, and modestly growing our store base.”

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