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Dick's Sporting Goods: closes 2020 with 9.5% increase in net sales

Mar 10, 2021 United States
Dick's Sporting Goods: closes 2020 with 9.5% increase in net sales
The Pittsburgh-based sportswear retailer announced fiscal 2020 results. The year was marked by a 9.5% increase in sales, despite the challenges of the COVID-19 pandemic
"We've never had a year quite like 2020. We were challenged in numerous ways, as were so many others, but as an organization we not only survived – we thrived, delivering record-setting sales and earnings", commented Ed Stack, Executive Chairman and Chief Merchandising Officer.

"We are very pleased with our strong fourth quarter sales and earnings results. (...) As we enter 2021, our business has so much momentum, and we have been pleased with our start to the year. Our focus in 2021 will center around enhancing our existing strategies to accelerate our core and enable long-term growth", added Lauren Hobart, President and Chief Executive Officer.

Fourth Quarter Results

Net sales for the fourth quarter of 2020 totaled 3.13 billion US dollars, an increase of 19.8% compared to the fourth quarter of 2019. This increase was driven by a 19.3% increase in consolidated same store sales, which included an increase in eCommerce sales of 57%. eCommerce penetration for the fourth quarter of 2020 was approximately 32% of total net sales, compared to approximately 25% during the fourth quarter of 2019. Fourth quarter 2019 consolidated same store sales increased 5.3%. Dick's reported consolidated net income for the fourth quarter ended on the 30th of January of 219.6 million US dollars, or 2.21 US dollars per diluted share. This compares to 69.8 million US dollars (0.81 US dollars per diluted share in the previous year).

Full Year Results

Net sales for the 52 weeks ended on the 30th of January 2021 increased by 9.5% to approximately 9.58 billion US dollars. Consolidated same store sales increased a record-setting 9.9% despite temporary store closures during March, April and May to help prevent the spread of COVID-19. eCommerce sales increased 100% and eCommerce penetration for the fiscal year was approximately 30% of total net sales, compared to approximately 16% in the previous year.

Dick's Sporting Goods reported consolidated net income for the year of 530.3 million US dollars, or 5.72 US dollars per diluted share. As a result of actions taken to prioritize the health and well-being of its teammates and athletes in response to COVID-19, the company incurred approximately 175 million US dollars of pre-tax incremental teammate compensation and safety costs in the period. For the 52 weeks ended on the 1st of February 2020, the Company reported consolidated net income of 297.5 million US dollars, or 3.34 US dollars per diluted share.

2021 Forecast

Due to the uneven nature of sales and earnings in 2020, Dick's planned 2021 off of a 2019 baseline and for the same reason believes it is important to compare 2021 against both 2019 and 2020. The company is forecast net sales for 2021 to be in the interval from 9.544 and 9.935 billion US dollars. The company expects to open six new Dick'S Sporting Goods stores and six specialty concept stores in 2021.

Image credits: heylagostechie on Unsplash

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