Dick’s Sporting Goods Q4 same-store sales up 5 percent

Net sales at Dick's Sporting Goods, for the fourth quarter increased 10.9 percent to about 2.5 billion dollars, while consolidated same store sales increased 5 percent. Same store sales for Dick’s Sporting Goods increased 5.3 percent, while Golf Galaxy increased 13.2 percent against fourth quarter 2015 consolidated same store sales decrease of 2.5 percent.

"We are very pleased with our strong fourth quarter results, as we delivered a 17 percent increase in non-GAAP earnings per diluted share driven by strong comp sales and gross margin expansion. We realized meaningful market share gains and saw growth across each of our three primary categories of hardlines, apparel and footwear," said Edward W. Stack, Chairman and CEO in a press release.

Fourth quarter non-GAAP EPS increases

Dick’s Sporting Goods reported consolidated net income for the fourth quarter ended January 28, 2017 of 90.2 million dollars or 0.81 dollar per diluted share, compared to the company's expectations provided on November 15, 2016 of 1.15 dollars to 1.27 dollars per diluted share. The company had reported net income of 129 million dollars or 1.13 dollars per diluted share, same quarter last year.

Excluding certain pre-tax charges, the company reported consolidated non-GAAP net income of 147.8 million dollars or 1.32 dollars per diluted share, compared to the company's previous expectations of 1.19 dollars to 1.31 dollars per diluted share.

The company said, ecommerce penetration was 17.9 percent of total net sales, compared to 15.7 percent during the fourth quarter of 2015. The company opened three former TSA stores as new Dick’s Sporting Goods stores and closed three Dick’s Sporting Goods stores, 13 Golf Galaxy stores and two True Runner stores. The company also acquired 30 Golfsmith stores, which are being converted to the Golf Galaxy brand. As of January 28, 2017, the company operated 676 Dick’s Sporting Goods stores in 47 states, 91 golf specialty stores in 32 states and 27 Field & Stream stores.

Full year

The company reported consolidated net income for the 52 weeks ended January 28, 2017 of 287.4 million dollars or 2.56 dollars per diluted share. Last year, the company had reported consolidated net income of 330.4 million dollars or 2.83 dollars per diluted share. The company’s consolidated non-GAAP net income was 349.7 million dollars or 3.12 dollars per diluted share against 335.1 million dollars or 2.87 dollars last year.

Net sales for year increased 9 percent from last year's period to 7.9 billion dollars, reflecting the opening of new stores and an increase of 3.5 percent in consolidated same store sales. Ecommerce penetration for the 52 weeks was 11.9 percent of total net sales, compared to 10.3 percent during the 52 weeks ended January 30, 2016.

Dividend up 12 percent, reveals FY17 outlook

On February 9, 2017, the company's Board of Directors authorized and declared a quarterly dividend in the amount of 0.17 dollar per share on the company's Common Stock and Class B Common Stock. This dividend represents an increase of approximately 12 percent over the company's previous quarterly per share amount and is equivalent to an annualized rate of 0.68 dollar per share.

Based on an estimated 111 to 112 million diluted shares outstanding, the company currently anticipates reporting earnings per diluted share of approximately 3.63 dollars to 3.73 dollars, which includes approximately 0.05 dollar per diluted share for the 53rd week. The company reported earnings per diluted share of 2.56 dollars for the 52 weeks ended January 28, 2017. Excluding TSA conversion costs, the company currently anticipates reporting non-GAAP earnings of approximately 3.65 dollars to 3.75 dollars against 3.12 dollars for the 52 weeks ended January 28, 2017.

Consolidated same store sales are currently expected to increase approximately 2 to 3 percent on a 52 week to 52 week comparative basis, compared to an increase of 3.5 percent in 2016. The company expects to open approximately 43 new Dick’s Sporting Goods stores and relocate approximately seven Dick’s Sporting Goods stores in 2017. The Company also expects to open approximately nine new Golf Galaxy stores, relocate one Golf Galaxy store and open eight new Field & Stream stores in 2017.

Based on an estimated 111 to 112 million diluted shares outstanding, the company currently anticipates reporting earnings per diluted share of approximately 0.48 dollar to 0.53 dollar in the first quarter of 2017, compared to 0.50 dollar in the first quarter of 2016. Non-GAAP earnings per diluted share are expected to be in the range of 0.50 dollar to 0.55 dollar in the first quarter of 2017.

Consolidated same store sales are currently expected to increase approximately 3 to 4 percent compared to a 0.5 percent increase in the first quarter of 2016. The company expects to open 16 new Dick’s Sporting Goods stores, relocate two Dick’s Sporting Goods stores, and open two new Field & Stream stores and nine new Golf Galaxy stores in the first quarter of 2017.

Picture:Dick's Sporting Goods