=Dick's Sporting Goods (DKS) reported earnings on Tue 15 November 2016 (b/o)

Dick's Sporting Goods beats by $0.06, beats on revs; guides Q4 EPS below consensus, comps in-line; sees Golfsmith deal accretive :

• Reports Q3 (Oct) earnings of $0.48 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus of $0.42; revenues rose 10.2% year/year to $1.81 bln vs the $1.77 bln Capital IQ Consensus.
• Consolidated same store sales increased 5.2%, compared to the Company's guidance of an ~2 to 3% increase. Same store sales for DICK'S Sporting Goods increased 5.5%, while Golf Galaxy decreased 3.3%. Third quarter 2015 consolidated same store sales increased 0.4%.
• "We are very pleased with our third quarter results, which were driven by a 5.2% comp sales increase and gross margin expansion. We realized meaningful market share gains and saw growth across each of our three primary categories of hardlines, apparel and footwear, while maintaining tight control of our inventory,"
• Co issues downside guidance for Q4, sees EPS of $1.15-1.27 vs. $1.32 Capital IQ Consensus; comps +3-6% vs. ests near +4.2%.  
• "Looking ahead, we believe our assortment and marketing will help us to continue to capture displaced market share this holiday."
• eCommerce penetration for the third quarter of 2016 was 9.6% of total net sales, compared to 8.0% during the third quarter of 2015.
• The Company has determined to retain 22 of the 31 acquired The Sports Authority these leases for conversion to DICK'S Sporting Goods stores. In addition, the Company will leverage the TSA customer information it purchased in its marketing during the fourth quarter of 2016.
• On November 2, 2016, the Company completed its purchase for certain assets of Golfsmith International Holdings, Inc., including its intellectual property and rights to acquire store leases, together with inventory for 30 stores. The Company's purchase was made in connection with Golfsmith's Chapter 11 proceeding. The purchase price was ~$43 million, of which $32 million is related to inventory. Intellectual property includes the name "Golfsmith", as well as Golfsmith's domain names, owned trademarks and customer information. The Company also committed to offer employment to at least 500 current Golfsmith employees. The Company expects this transaction to be accretive to its fiscal 2017 earnings.