Dick's Sporting Goods authorizes program to repurchase up to US$200M of the company's common stock over next 12 months
January 12, 2012
– Dick's Sporting Goods, Inc. announced today that its Board of Directors has authorized a share repurchase program of up to $200 million of the Company's common stock over the next 12 months. The Company is also narrowing its consolidated earnings per diluted share guidance and revising its consolidated same store sales outlook for the fourth quarter and full year 2011.
Share Repurchase Program
The Company is initiating the repurchase program to offset the dilutive effect of the issuance of shares expected in connection with the expiration in 2013 of a substantial number of stock options issued following the Company's 2002 initial public offering, which are anticipated to be exercised in 2012. The Company will finance the repurchases from cash on hand.
The repurchases, which may be made in privately-negotiated transactions or in the open market as permitted by Securities Exchange Act Rule 10b-18, including pursuant to a Securities Exchange Act Rule 10b5-1 repurchase plan, could begin immediately and may occur from time-to-time in the future. The Company may suspend or discontinue this repurchase program at any time.
The Company now expects consolidated earnings per diluted share to be $0.87 to 0.88 for the fourth quarter of 2011. For full year 2011, non-GAAP consolidated earnings per diluted share are expected to be $2.01 to 2.02. The Company's fourth quarter and full year 2011 revised expectations compare to original guidance of $0.87 to 0.89 and $2.01 to 2.03, respectively, as previously disclosed in its press release dated November 15, 2011. Non-GAAP earnings per diluted share exclude a gain on sale of investment and the favorable impact of lower litigation settlement costs.
The Company also expects fourth quarter 2011 consolidated same store sales to be slightly negative to slightly positive compared to the original outlook of flat to an increase of 1%. This outlook comes on top of a 9.3% increase in consolidated same store sales in the fourth quarter of 2010. The consolidated same store sales for the full year 2011 are expected to approach 2% compared to the previous outlook of approximately 2%, and on top of an increase of 7.2% in fiscal 2010.
"At the time of our third quarter earnings announcement we noted that our guidance was predicated on normal winter weather patterns," said Edward W. Stack, Chairman and CEO. "While the warmer- and drier-than-normal winter has impacted our same store sales and inventory levels, sales and gross margin pressure has been minimized due to better than anticipated operating leverage, resulting in anticipated full year EPS growth of 23 to 24%."
In accordance with standard practice, the Company's fourth quarter and full year 2011 results along with additional detail regarding 2012 expectations will be provided in the March 2012 fourth quarter and full year 2011 earnings announcement.
About Dick's Sporting Goods, Inc.
Dick's Sporting Goods, Inc. is an authentic full-line sporting goods retailer offering a broad assortment of brand-name sporting goods equipment, apparel and footwear in a specialty store environment. The Company also owns and operates Golf Galaxy, LLC, a golf specialty retailer. As of January 12, 2012, the Company operates 480 Dick's Sporting Goods stores in 43 states, 81 Golf Galaxy stores in 30 states and e-commerce websites and catalog operations for both Dick's Sporting Goods and Golf Galaxy.