Dick's announced that its Q3 revenue increased by 10%, driven primarily by its 2007 acquisition of Chick's sporting goods. However, the company's comparable store sales decreased by 2.8% as consumers started to spend less because of the weakening U.S. economy. Additionally, Dick's net income during the quarter dropped 40% during the quarter because of costs associated with the acquisitions of Chick's and Golf Galaxy. Excluding these acquisition costs, Dick's net income still decreased approximately 24.5% during the quarter.
Net sales during Q2 increased by 7%, primarily driven by new store openings as well as the acquisition of Chick's. However, the company's comparable store sales dropped by 3.7% as consumers felt the pinch of the economic downturn.
Dick's Sporting Goods reported results from the first quarter of FY08, announcing that although net sales increased 11% (largely fueled by new stores), net income decreased 4% as comparable store sales fell 3.8% and 7.4% at the Dick's and Golf Galaxy chains, respectively. Management blamed the weak economic environment for the retailer's struggles but the company still plans on opening approximately 44 new Dick's stores and 10 new Golf Galaxy locations in 2008.
Dick's reported 18% revenue growth in the third quarter of fiscal 2007 compared to the same quarter in 2006, largely due to the inclusion of the recently acquired Golf Galaxy retail chain and new store openings through the 2007 year. Comparable store sales fell 2.5% during the quarter as retailers throughout the US faced tough conditions due to the volatile state of the economy in the wake of the subprime lending fallout.
Dick's Sporting Goods executed a 2:1 split of its common stock.
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