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$DKS said Paul Gaffney, who has held senior leadership positions at $HD, will join the company as EVP and Chief Technology Officer to lead the digital transformation. With an array of new products getting ready for launch next year, Dick’s Sporting expects the value of its private brands business to reach $1Bil in the near term.
$DKS expects the fourth quarter and fiscal 2018 to be promotional, and margins to remain under pressure from the competitive retail industry. In order to leverage potential opportunities in future, Dick’s Sporting plans to make substantial investments in business in 4Q17 and the next year. The investments will have a negative impact on earnings.
$DKS said it expects FY17 GAAP earnings per share to be in the $2.95-$3.07 range, and non-GAAP EPS between $2.92 and $3.04. Same store sales are expected to be in the range of flat to a low single-digit decline. Dick’s Sports intends to open 43 new stores and relocate 7 stores this year. Further, the company sees a 20% decline in its FY18 earnings.
After recording an annual decrease in third quarter earnings, $DKS said it is looking for GAAP earnings per share in the range of $1.05 to $1.17 for 4Q17, and non-GAAP EPS between $1.12 and $1.24. Same store sales are expected to decline in the low single-digits in the fourth quarter, when the company will be relocating one of its stores.
Sporting goods retailer $DKS reported a 7% growth in 3Q17 sales to $1.9Bil, owing mainly to continued growth in online business. Same store sales dipped 0.9%. Meanwhile, earnings came under pressure from a marked increase in expenses, and dropped 20% YoY to $0.35 per share. Non-GAAP earnings were $0.30 per share, down 38% compared to last year.
In spite of posting flat same store sales, sporting goods retailer $DKS managed to increase net sales 9.6% to approx $2.2Bil in 2Q17. Net income was $112.4MM, or $1.03 per share, compared to $91.4MM, or $0.82 per share a year ago. On a non-GAAP basis, $DKS earned $104.8MM, or $0.96 per share during the quarter.
$LW appointed Andre Hawaux, COO of $DKS, and Hala Moddelmog, CEO of the Metro Atlanta Chamber, to its BoD, effective July 19, 2017. Executive Chairman Timothy McLevish has decided not to seek re-election to its BoD. The Board will appoint current lead independent director W.G. Jurgensen to the role of Non-Executive Chairman.
$DKS commented that on e-commerce business the company expects this business to continue to be more profitable going forward. Additionally on store renewals and its impact or margins, the company said it has an option to move or close the store and has been able to leverage real estate prices to come down.
$DKS said that on slowing down its store growth, it's because the new stores are doing well with productivity over 90%. The company added that it is also doing so as it is seeing the price of real estate to come down significantly due to store closures of other competitors.
$DKS saw growth in each of its three primary categories; hardlines, apparel and footwear in 1Q17. The company also saw growth in tickets and transactions. On store development, $DKS plans to significantly reduce its store growth in the coming years. In 2017, the company plans to open about 43 Dick's stores of which 19 are former TSA stores.
$DKS expects to open about 8 new Golf Galaxy stores, relocate 1 Golf Galaxy store and open 8 new Field & Stream stores adjacent to new or relocated DICK's Sporting Goods stores in 2017. In 2017, the company anticipates capital expenditures to be about $350MM on a net basis and about $465MM on a gross basis.