Dick's 3rd-qtr profit flat, hurt by price cuts

Dick's posts flat 3rd-qtr net income as price cuts and marketing efforts cut into profit

Associated Press

NEWS: Dick's Sporting Goods said Tuesday it posted a flat third-quarter net income, hurt by weak consumer demand.

DETAILS: The sporting goods retailer said that while sales were better than expected, the tough consumer environment forced it to cut prices and spend more on marketing, which lowered profit.

NUMBERS: For the quarter ended Nov. 2, Dick's earned $50 million, or 40 cents per share, roughly the same as the $50.1 million, or 40 cents per share, the company posted for the 2012 third quarter. Revenue rose 7 percent to $1.4 billion from $1.31 billion.

The results came in slightly ahead of Wall Street predictions. Analysts, on average, expected a profit of 39 percent per share on $1.37 billion in revenue, according to FactSet.

FUTURE: Dick's predicted a fourth-quarter profit of between $1.04 and $1.07 per share, while analysts expect a profit of $1.06 per share.

For the full year, the company expects an adjusted profit of $2.62 to $2.65 per share, while analysts expect $2.64 per share.

STOCK: Shares of Dick's added $1.15, or 2 percent, to $57.52 in morning trading.

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