Net income increased 57% to $12.2 million, and earnings per diluted share increased 43% to 10 cents, compared to prior year net income of $7.8 million, or 7 cents per diluted share. Net sales for the quarter increased 18% to $838.8 million. The figures include the operating results of Golf Galaxy.
The company says the third quarter last year saw an 8.9% increase in comp sales due to early cold weather, not matched at the start of this winter. "Cold weather and hunting apparel did not do well in the third quarter," said Ed Stack, chairman and CEO, during the call. The company projects that comp sales will increase 2% in the fourth quarter, as the weather gets colder.
As for store expansions, the company opened 46 new Dick's stores in 2007, including 25 new locations in the third quarter. About 16 Golf Galaxy stores will be opened this year, the executives said. Bill Colombo, president and COO, said the company will boost its current store count, 340 Dick's and 77 Golf Galaxy, by 15% in 2008. "This past quarter we opened up in 13 new markets. For the next year, we expect to again open half our sores in the third quarter, and split the rest in the first and second quarter," Colombo said. He said the firm will move the Golf Galaxy stores, which began in Minnesota, into year-round, warm-weather cities. Also, the firm plans to open a third distribution center in Atlanta, expected to be operational by late 2008.
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