Dick’s Sporting Goods Q2 net sales rise 7.9 percent

Dick’s Sporting Goods, reporting sales and earnings results for the second quarter ended August 1, 2015 said that its consolidated net income was 90.8 million dollars, or 0.77 dollars per diluted share, compared to the company's expectations provided on May 19, 2015 of 0.73 dollar to 0.76 dollar per diluted share. The company reported consolidated net income of 69.5 million dollars, or 0.57 dollar per diluted share. Excluding golf restructuring charges in the prior year, net income was 81.7 million dollars, or 0.67 dollar per diluted share.

Net sales for the second quarter increased 7.9 percent to approximately 1.8 billion dollars. Consolidated same store sales increased 1.2 percent compared to the company's guidance of approximately flat to an increase of 2 percent. Same store sales for Dick’s Sporting Goods increased 1.5 percent, against a strong base that included the World Cup. Golf Galaxy decreased 2.9 percent, representing sequential progress. Second quarter 2014 consolidated same store sales increased 3.2 percent.

“We are pleased with our second quarter results. We delivered a double-digit increase in earnings by leveraging our omni-channel presence to generate profitable revenue growth and meaningful margin expansion,” said Edward W. Stack, Chairman and CEO, adding, “We are seeing the benefits of our key growth pillars, as we continue to open very productive stores while winning online.”

Ecommerce penetration for the second quarter of 2015 was 7.3 percent of total net sales, compared to 6.3 percent during the second quarter of 2014. The company opened seven new Dick’s Sporting Goods stores, one new Field & Stream store and closed three Golf Galaxy stores, as these leases expired. As of August 1, 2015, the company operated 619 Dick’s Sporting Goods stores in 46 states, 75 Golf Galaxy stores in 29 states and 12 Field & Stream stores in seven states.

Net sales for the 26 weeks ended August 1, 2015 increased 8.3 percent from last year's period to approximately 3.4 billion dollars, reflecting the opening of new stores and a 1.1 percent increase in consolidated same store sales. Based on an estimated 118 million diluted shares outstanding, the company currently anticipates reporting consolidated earnings per diluted share in the range of 3.13 dollars to 3.21 dollars. For the 52 weeks ended January 31, 2015, the company reported consolidated earnings per diluted share of 2.84 dollars. Consolidated earnings per diluted share for the 52 weeks ended January 31, 2015 were 2.87 dollars, excluding a gain on the sale of an asset and golf restructuring charges. Consolidated same store sales are currently expected to increase in the range of 1 to 3 percent, compared to a 2.4 percent increase in fiscal 2014.

The company expects to open 44 new Dick’s Sporting Goods stores and relocate seven Dick’s Sporting Goods stores in 2015. The company also expects to open nine new Field & Stream stores and relocate one Golf Galaxy store in 2015.

Based on an estimated 118 million diluted shares outstanding, the company currently anticipates reporting consolidated earnings per diluted share in the range of 0.45 dollar to 0.48 dollar in the third quarter of 2015, compared to consolidated earnings per diluted share of 0.41 dollar in the third quarter of 2014. Consolidated same store sales are currently expected to increase in the range of 1 to 3 percent in the third quarter of 2015, as compared to a 1.1 percent increase in the third quarter of 2014. The company expects to open 27 new Dick’s Sporting Goods stores and relocate five Dick’s Sporting Goods stores in the third quarter of 2015. The Company also expects to open seven new Field & Stream stores in the third quarter of 2015.