Dick's Sporting raises profit estimate as same-store sales jump
(Reuters) - Dick's Sporting Goods Inc (DKS.N) estimated its fourth-quarter earnings above its previous forecast due to a higher-than-expected jump in same-store sales, sending the company's shares up as much as 8 percent in premarket trading.
The company's strong results come after a number of retailers, including Kohl's Corp (KSS.N) and J.C. Penney Co Inc (JCP.N), posted weak sales in the key U.S. holiday quarter.
Bad weather, a weak consumer spending environment and fewer days between Thanksgiving and Christmas resulted in a tough holiday shopping season for U.S. retailers, many of whom were forced to discount heavily to attract shoppers.
Dick's maintained its merchandise margin levels consistent with last year, Chief Executive Edward Stack said in a statement, suggesting that the company did not have to offer deep discounts.
Dick's, which sells everything from camping and golfing gear to winter wear and guns, said same-store sales rose 7 percent in the quarter ended February 2, faster than its forecast of 3-4 percent.
The company estimated earnings of $1.10-$1.11 per share for the quarter, above its prior forecast of $1.04-$1.07 per share.
Analysts on average were expecting a profit of $1.06 per share, according to Thomson Reuters I/B/E/S.
Dick's also forecast 2014 earnings of $3.03-$3.08 per share, below the average analyst estimate of $3.09 per share.
The company's shares were up 7 percent at $54.75 before the bell. The stock closed at $51.10 on Friday on the New York Stock Exchange.
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