PITTSBURGH _ For shoppers in the market for a new pair of hiking boots or fishing gear, this could be a good time to start browsing.
Sporting goods retailers are getting more aggressive in pricing as the market gets increasingly competitive _ and Dick's Sporting Goods is no exception.
"Pricing in the marketplace has become unpredictable, and, at times, irrational," Edward Stack, chairman and CEO, told analysts during a Tuesday quarterly earnings conference call. "We will engage to protect and strengthen our leadership position.
"Consequently, we've become more promotional and competitive, and have launched our best price guarantee, where we promise the customer if they find a lower price than ours, we'll match it," he added.
The company, based outside Pittsburgh, on Tuesday reported net sales for the second quarter rose 9.6 percent to $2.2 billion.
Consolidated same store sales, a key measure of stores that have been open at least a year, inched up 0.1 percent _ falling short of the company's guidance of a 2 percent to 3 percent increase. A year ago, same store sales rose 2.8 percent. Online sales climbed 19 percent.
Dick's reported net income of $112.4 million, or $1.03 per share, up from $91.4 million, or 82 cents per share, in the same period last year. Sales flagged in hunting gear and athletic apparel, as well as in licensed items and electronics.
"On the hunting side, it is very slow growth," Stack said of the market. "There is no concern about any gun reform right now based on the political situation that is in Washington today, and the inventory's backed up."
The company's stock took a hit on Tuesday, ultimately tumbling 8 percent to close at $26.87.
Matthew Karr, manager of investment research at Pittsburgh's Fragasso Financial Advisors, noted the retailer's same store sales had been improving in recent quarters. "If the underlying store base isn't growing rapidly, adding stores doesn't really do much for you, especially if the market is saturated."
Stack described retail as weathering a perfect storm. He added, "I think sporting goods is in the center of it right now.
"We're not particularly happy that we're in it, but we think we are one of the few that are very well-positioned to come out of the other side very strong and continue to be the leaders in this industry."
