Companies

Dick's Sporting Goods enthusiastic about the business

Mar 20, 2019 United States

The US-based sporting goods chain reported falling sales and earnings for the fourth-quarter due to a calendar shift. For the full year, Dick’s Sporting Goods predicts consolidated same-store sales to be approximately 0%-2%

“We are pleased with our fourth quarter results. Our core business performed quite well, as our athletes have responded positively to many of our initiatives, resulting in comp sales gains across key categories and double-digit percentage increases in eCommerce and private brand sales”, commented Edward W. Stack, Chairman and Chief Executive Officer, adding: “As we look forward to 2019, we are enthusiastic about our business and expect to return to positive comp sales beginning in the second quarter. We will continue to make significant investments in our business to meet our athletes’ ever-changing needs and grow our leadership position in the industry".

"In 2019, we are focused on enhancing our athletes’ experience in our stores, improving our eCommerce fulfillment capabilities and elevating our technology talent and capabilities”, added Lauren R. Hobart, President of Dick’s Sporting Goods.

Fourth Quarter Results

The company reported consolidated net income for the fourth quarter (ended on the 2nd of February 2019) of 102.6 million US dollars, or 1.07 US dollars per diluted share (negatively impacted by approximately 8 cents per diluted share versus last year due to the shifted calendar). The company reported consolidated net income for the fourth quarter of 116.0 million US dollars, or 1.11 US dollars per diluted share.

Net sales for the fourth quarter of 2018 decreased by 6.5% to approximately 2.49 billion US dollars.

Omni-channel Development

Adjusted for the calendar shift due to the 53rd week in 2017, eCommerce sales for the fourth quarter of 2018 increased by approximately 17%. eCommerce penetration for the fourth quarter of 2018 was approximately 23% of total net sales, compared to approximately 19% during the fourth quarter of 2017. As of the 2^ndof February 2019, the company operated 729 Dick’s Sporting Goods stores in 47 states, with approximately 38.6 million square feet.

Full Year Results

The company reported consolidated net income for the year (ended ont he 2nd of February 2019) of 319.9 million US dollars, or 3.24 US dollars per diluted share. Net sales decreased by 1.8 percent from last year. Fiscal 2017 consolidated same-store sales decreased by 0.3% on a 52-week to 52-week comparative basis.

Full-Year 2019 Outlook

Consolidated same-store sales are currently expected to be approximately flat to an increase of 2%, compared to a 3.1% decrease in 2018. The company expects to deliver positive consolidated same-store sales beginning in the second quarter. The company expects to open seven new Dick’s Sporting Goods stores and relocate three Dick’s Sporting Goods stores in 2019. The company also expects to open two new Golf Galaxy stores and relocate one Golf Galaxy store in 2019. Six of the new stores are expected to open during the third quarter.

Photo by Chris Lawton on Unsplash

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