Dick’s Sporting Goods: Q4 net sales decrease 6.5 percent

Dick’s Sporting Goods, Inc. reported consolidated net income for the fourth quarter ended February 2, 2019 of 102.6 million dollars or 1.07 dollars per diluted share, which the company said, while consolidated net income was 116 million dollars or 1.11 dollars per diluted share. On a non-GAAP basis, the consolidated net income for the quarter was 127.3 million dollars or 1.22 dollars, positively impacted by approximately 9 cents per diluted share for the 14th week. The company added that consolidated same store sales decreased 2.2 percent, while net sales decreased 6.5 percent to around 2.49 billion dollars. Based on an un-shifted calendar, consolidated same store sales decreased 3.7 percent.

"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," said Edward W. Stack, the company’s Chairman and CEO in a statement, adding, "For 2018, we delivered earnings near the high end of our expectations, which represents an 8 percent increase over last year."

Highlights of Disck’s Sporting Goods’ Q4 performance

Adjusted for the calendar shift due to the 53rd week in 2017, ecommerce sales for the quarter increased around 17 percent and ecommerce penetration was approximately 23 percent of total net sales, compared to approximately 19 percent during the fourth quarter of 2017.

In the fourth quarter, the company closed three Dick’s Sporting Goods stores and as of February 2, 2019, operated 729 Dick’s Sporting Goods stores in 47 states, 94 Golf Galaxy stores in 32 states and 35 Field & Stream stores in 16 states.

Dick’s Sporting Goods’ FY18 same-store sales down 3.1 percent

The company reported consolidated net income for the 52 weeks of 319.9 million dollars or 3.24 dollars per diluted share, while consolidated net income for the 53 weeks was 323.4 million dollars or 3.01 dollars per diluted share, which included approximately 9 cents per diluted share for the 53rd week. On a non-GAAP basis, the company reported consolidated net income of 324.3 million dollars or 3.01 dollars per diluted share, which also included approximately 9 cents per diluted share for the 53rd week.

Adjusted for the calendar shift due to the 53rd week in 2017, the company said, consolidated same store sales decreased 3.1 percent on a 52-week to 52-week comparable basis. Net sales for the 52 weeks decreased 1.8 percent from last year's 53 week period to approximately 8.44 billion dollars.

On February 22, 2019, the company's board of directors declared a quarterly dividend of 275 cents per share on the company's Common Stock and Class B Common Stock payable in cash on March 29, 2019 to stockholders of record at the close of business on March 15, 2019. This dividend represents an increase of approximately 22 percent and is equivalent to an annualized rate of 1.10 dollars per share.

Dick’s Sporting Goods’ projections for FY19

For the fiscal year 2019, the company currently projects earnings per diluted share to be approximately 3.15 dollars to 3.35 dollars, which includes approximately 30 million dollars or 23 cents per diluted share, of net investments in business transformation initiatives. The company's earnings per diluted share guidance includes the expectation of share repurchases to fully offset dilution in 2019. The company reported earnings per diluted share of 3.24 dollars for the 52 weeks ended February 2, 2019.

Consolidated same store sales are currently expected to be approximately flat to an increase of 2 percent, compared to a 3.1 percent 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.

Picture:Facebook/Dick's Sporting Goods

 

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