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CEO Edward W. Stack said at Wednesday's annual shareholders meeting that the Findlay-based retailer plans to open 20 Dick's stores this year, compared with 43 in 2008. Dick's plans to open one new Golf Galaxy, as that brand continues to struggle amid a slump in interest in the sport.
"We've indicated the golf business still will be a bit challenging this year, but we see improvement as the economy somewhat stabilizes," Stack said after his presentation at the meeting.
Dick's had a net loss of $35.1 million last year, or 31 cents a share, while its sales were up by 6 percent to $4.13 billion primarily due to merchandise sold at new stores including the Chick's sporting goods chain in California that it acquired in 2007.
The company -- the biggest full-line sporting equipment seller nationwide -- operated 487 stores in all last year. Stack said yesterday that Dick's eventually will reach 800 stores in the United States.
Comparable store sales -- gauging stores open a year or longer -- were down 4.8 percent from 2007-08, and are expected to decline by 6 to 9 percent this year. Dick's expects to earn 88 cents to $1 per share this year.
Senior analyst Mark Mandel of FTN Equity Capital Markets Inc. issued a neutral rating this week on Dick's stock, which was trading in the $23 range a year ago, dipped to below $10 in November and ended yesterday at $18.42, down 34 cents.
"Once the economy recovers they will be fine," Mandel said, noting that Dick's is the top sporting goods retailer, and has a good store model.
"The Golf Galaxy acquisition maybe was not the best thing to do, but they did it," he added, referring to the 89-store chain that became part of Dick's in 2007. The company took a $164.3 million charge last year related to the struggling business.
Going forward, Dick's prospects depend not only on an economic recovery, but how aging baby boomers will use their leisure time -- and whether they'll buy expensive equipment such as treadmills, kayaks or golf clubs, or cheaper items such as walking shoes.
Dick's shareholders yesterday also re-elected directors William J. Colombo, a former Dick's executive, David I. Fuente, a former Office Depot Inc. CEO, and Larry D. Stone, president and chief operating officer at home improvement retailer Lowe's Companies Inc.
Kim Leonard can be reached via e-mail or at 412-380-5606.
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