ATLANTA — The athletic consumer is holding back on purchasing, causing Dick’s Sporting Goods, Inc. to report a 4 percent drop in net income to $20.8 million, or 18 cents per diluted share, in the first quarter, ended May 3, from $21.7 million, or 19 cents per diluted share.
The results, which are within Dick’s March 11 earnings guidance of 16 to 19 cents per diluted share, include a pretax gain on sale of a corporate aircraft totaling $2.4 million.
While sales increased 11 percent to $912.1 million from $823.55 million, the company cautioned that it was primarily due to new store sales and partially offset by a comparable store sales decrease of 3.8 percent for Dick’s Sporting Goods stores. Comparable store sales for Golf Galaxy fell 7.4 percent on a pro-forma basis.
Edward Stack, chairman, CEO and president, said in a statement, “Throughout this difficult environment, we will continue to focus on the core athlete and outdoor enthusiast, while managing our business with our consistent focus on financial discipline and operational execution.”
Dick’s plans to open approximately 44 new Dick’s Sporting Goods stores, 10 Golf Galaxy stores and relocate one Dick’s store in 2008. The company opened eight Dick’s stores and four Golf Galaxy stores in the first quarter.