Dick’s Sporting Goods Q4 profit up, net sales rise 9.7 percent in FY14

Dick’s Sporting Goods reported consolidated net income for the fourth quarter ended January 31, 2015 of 155.5 million dollars, or 1.30 dollars per diluted share, compared to the company's expectations provided on November 18, 2014 of 1.18 to 1.28 dollars per diluted share. For the fourth quarter ended February 1, 2014, the company reported consolidated net income of 138.6 million dollars, or 1.11 dollars per diluted share.

Net sales for the fourth quarter increased 10.9 percent to approximately 2.2 billion dollars. Consolidated same store sales increased 3.4 percent compared to the company's guidance of an approximate 1 to 3 percent increase. Same store sales for Dick’s Sporting Goods increased 3.8 percent, while Golf Galaxy decreased 7.1 percent. Fourth quarter 2013 consolidated same store sales increased 7.3 percent.

The company reported consolidated non-GAAP net income for the 52 weeks ended January 31, 2015 of 347.8 million dollars, or 2.87 dollars per diluted share. On a GAAP basis, the company reported consolidated net income of 344.2 million dollars, or 2.84 dollars per diluted share. For the 52 weeks ended February 1, 2014, the company reported consolidated net income of 337.6 million dollars, or 2.69 dollars per diluted share. Net sales for the 52 weeks increased 9.7 percent from last year's period to 6.8 billion dollars due to the consolidated same store sales increase of 2.4 percent coupled with the opening of new stores.

“The 17 percent increase in earnings per diluted share was driven by the continued growth of our omni-channel network, our powerful marketing and merchandising strategies, and the execution of these strategies by our store associates,” said Edward W. Stack, Chairman and Chief Executive Officer.

E-commerce penetration for the fourth quarter was 14.4 percent of total sales, compared to 12.2 percent during the fourth quarter of 2013. eCommerce penetration for the 52 weeks ended January 31, 2015 was 9.2 percent of total sales, compared to 7.9 percent during the 52 weeks ended February 1, 2014. In the fourth quarter, the company opened six new Dick’s Sporting Goods stores and closed two Golf Galaxy stores. As of January 31, 2015, the company operated 603 Dick’s Sporting Goods stores in 46 states, 78 Golf Galaxy stores in 29 states and 10 Field & Stream stores in five states.

The company's current outlook for 2015, based on an estimated 119 to 120 million diluted shares outstanding, anticipates reporting consolidated earnings per diluted share of approximately 3.10 dollars to 3.20 dollars. Consolidated same store sales are currently expected to increase 1 to 3 percent, compared to a 2.4 percent increase in fiscal 2014. The company expects to open approximately 45 and relocate nine Dick’s Sporting Goods stores in 2015. The company also expects to open approximately nine Field & Stream stores and relocate one Golf Galaxy store in 2015.

Consolidated same store sales in the first quarter of 2015 are currently expected to be approximately flat to an increase of 2 percent, compared to a 1.5 percent increase in the first quarter of 2014. The company expects to open approximately nine and relocate one Dick’s Sporting Goods stores, open one Field & Stream store, and relocate one Golf Galaxy store in the first quarter.