Dick's Sporting Goods: Full year net sales rise 8.4 percent

Net sales for the 14-week fourth quarter at Dick’s Sporting Goods increased 7.3 percent to approximately 2.66 billion dollars, while consolidated same store sales decreased 2 percent on a 13-week to 13-week comparative basis. For the year, net sales for the 53 weeks increased 8.4 percent to 8.59 billion dollars due to the growth of the company's store network, as well as the inclusion of the 53rd week of sales during fiscal 2017. Consolidated same store sales decreased 0.3 percent on a 52-week to 52-week comparative basis.

"Amidst a competitive environment, we are very pleased to deliver fourth quarter results in line with our expectations, driving growth across key businesses. As expected, margins remained under pressure, however the decline was less than we anticipated," said Edward W. Stack, Chairman and Chief Executive Officer in a statement, adding, "During 2017, we made significant progress on key priorities as we grew both our online and private brand businesses to over one billion dollars in sales."

Review of Dick’s Sporting Goods’ Q4 results

Dick’s Sporting Goods, Inc. reported consolidated net income for the fourth quarter ended February 3, 2018 of 116 million dollars or 1.11 dollars per diluted share, which includes approximately 0.09 per diluted share for the 14th week.

The company reported consolidated net income for the fourth quarter ended January 28, 2017 of 90.2 million dollars, or 0.81 dollar per diluted share. On a non-GAAP basis, consolidated net income was 127.3 million dollars or 1.22 dollar per diluted share, compared to the company's expectations provided on November 14, 2017 of 1.12 to 1.24 per diluted share. For the fourth quarter, the Company reported consolidated non-GAAP net income of 147.8 million dollars, or 1.32 dollars per diluted share.

Ecommerce sales for the quarter increased around 9 percent on a 13-week to 13-week comparative basis, as the company successfully completed its first holiday season on its new web platform. The company relocated one Dick’s Sporting Goods store and closed three DICK’S Sporting Goods stores and four Golf Galaxy stores and as of February 3, 2018, operated 716 Dick’s Sporting Goods stores in 47 states, 94 Golf Galaxy stores in 32 states and 35 Field & Stream stores in 16 states.

Highlights Dick’s Sporting Goods’ annual performance

The company reported consolidated net income for the 53 weeks ended February 3, 2018 of 323.4 million dollars or 3.01 dollars per diluted share, including approximately 0.09 dollar per diluted share for the 53rd week. For the 52 weeks ended January 28, 2017, the company reported consolidated net income of 287.4 million dollars or 2.56 dollars per diluted share.

On a non-GAAP basis, the company reported consolidated net income for the 53 weeks of 324.3 million dollars or 3.01 dollars per diluted share. For the 52 weeks, consolidated non-GAAP net income was 349.7 million dollars, or 3.12 dollars per diluted share.

The company reveals outlook for 2018

Based on an estimated 103 million dollars diluted shares outstanding, the company currently anticipates reporting earnings per diluted share of approximately 2.80 to 3 dollars compared to 3.01 dollars for the 53 weeks ended February 3, 2018, including 0.09 dollar for the 53rd week. On a non-GAAP basis, the Company reported earnings per diluted share of 3.01 dollars for the 53 weeks ended February 3, 2018.

Consolidated same store sales are currently expected to be in the range of approximately flat to a low single-digit decline on a 52-week to 52-week comparative basis, compared to a 0.3 percent decrease in 2017.

The company expects to open approximately 19 new Dick’s Sporting Goods stores and relocate approximately four in 2018. Eight of the new stores are expected to open during the first quarter. The company does not expect to open any new Field & Stream or Golf Galaxy stores in 2018.

On February 12, 2018, the company's board of directors authorized and declared a quarterly dividend in the amount of 0.225 dollar per share on the company's Common Stock and Class B Common Stock. This dividend represents an increase of approximately 32 percent over the company's previous quarterly per share amount and is equivalent to an annualized rate of 0.90 dollar per share.

Picture:Facebook/Dick's Sporting Goods

 

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