• Q4 profit rose 16.8% to $129.7m
• Q4 sales up 12% to $1.8bn
• Full-year profit grew 10.2% to $290.7m 

Retailer Dick's Sporting Goods today (11 March) posted a 16.8% increase in fourth-quarter profit, helped by rising sales in its online business - but admitted it lost out on sales of cold-weather clothing in January. 

Net income reached US$129.7m for the quarter to 2 February, up from $111.1m the prior year.

Sales increased 12% to $1.8bn from the same period last year, helped by the addition of new stores and a 1.2% rise in same-store sales. Same-store sales declined 2.2% at Dick's Sporting Goods, but rose 1.3% at Golf Galaxy and surged 54.2% in the e-commerce division.

"In the fourth quarter, we experienced continued momentum in athletic footwear and apparel along with strong sales in hunting that exceeded our expectations," said chairman and CEO Edward Stack.

"These increases were partially offset by lower-than-anticipated sales in outerwear and cold weather accessories, as well as a significant decline in the fitness category.

"As a result of the unusually warm weather conditions, including during peak selling periods in December, we significantly reduced our inventory levels of cold weather merchandise to align with lower consumer demand and avoid carrying over excess inventory after a second year in a row of warm weather.

"While this was a prudent move that enabled us to effectively manage inventory and protect our margins, it did limit our ability to capture sales in January when temperatures dropped and snowfall increased."

Over the full year, net income grew 10.2% to $290.7m against $263.9m last year. Net sales were up 12% to $5.8bn, compared to $5.21bn the prior year, with consolidated same store sales climbing 4.3%.

Looking forward, the company expects first quarter earnings per diluted share to range from $0.47 to $0.49, compared to $0.45 reported last year. Full-year earnings per diluted share are likely to be between $2.84 and $2.86 from $2.31 the prior year.

"In 2012, we made several important investments for the future, including adding locations, acquiring established brands, developing and testing retail concepts, further building omni-channel capabilities, and creating new marketing strategies.

"All of these investments have strengthened our foundation and position us for continued growth. We're optimistic about our outlook for the coming year and excited about our long-term prospects for the future," Stack added.