Dick's Sporting Goods Q4 same-store sales increase 5.3 percent

Dick’s Sporting Goods, Inc., reported consolidated net income for the fourth quarter ended February 1, 2020 of 69.8 million dollars or 81 cents per diluted share compared to 102.6 million dollars or 1.07 dollars per diluted share in the previous year. On a non-GAAP basis, the company reported consolidated net income of 113.3 million dollars or 1.32 dollars per diluted share.Adjusted EPS includes a 48.8 million dollars pre-tax restructuring charge for the newly-announced removal of the hunt category from about 440 stores in 2020. Net sales for the quarter increased 4.7 percent to approximately 2.61 billion dollars, while consolidated same-store sales increased 5.3 percent.

“We are very pleased with our strong fourth quarter results. Despite the compressed holiday selling season and the challenging conditions we faced with unseasonably warm weather, we delivered a 5.3 percent comp sales increase, supported by increases in both average ticket and transactions, as well as growth across each of our three primary categories of hardlines, apparel and footwear,” said Edward W. Stack, the company’s Chairman and Chief Executive Officer, adding, “During 2019, we made meaningful changes across our business, which fuelled our strongest annual comp sales gain since 2012 and a 14 percent increase in non-GAAP earnings per diluted share over 2018.”

Q4 ecommerce sales at Dick’s Sporting Goods rose 15 percent

The company said in a statement, ecommerce sales for the quarter increased 15 percent, while ecommerce penetration was approximately 25 percent of total net sales, compared to approximately 23 percent during the fourth quarter of 2018. In the fourth quarter, the company closed seven Dick’s Sporting Goods stores and one Golf Galaxy store and as of February 1, 2020, the company operated 726 Dick’s Sporting Goods stores in 47 states, with approximately 38.5 million square feet, 94 Golf Galaxy stores in 32 states, with approximately 2.0 million square feet and 27 Field & Stream stores in 16 states, with approximately 1.2 million square feet.

For the full year, the company reported consolidated net income of 297.5 million dollars or 3.34 dollars per diluted share compared to 319.9 million dollars or 3.24 dollars per diluted share, while on a non-GAAP basis, consolidated net income reached 329.1 million dollars or 3.69 dollars per diluted share. Net sales for the 52 weeks increased 3.7 percent to approximately 8.75 billion dollars with consolidated same-store sales increase of 3.7 percent.

On March 6, 2020, the company’s board of directors authorized and declared a quarterly dividend in the amount of 3125 cents per share on its common stock and Class B common stock payable in cash on March 27, 2020 to stockholders of record at the close of business on March 20, 2020. This dividend represents an increase of 13.6 percent over the company’s previous quarterly per share amount and is equivalent to an annualized dividend of 1.25 dollars per share.

Dick’s Sporting Goods declares full year 2020 outlook

Based on an estimated 85.5 million diluted shares outstanding, the company currently projects earnings per diluted share to be approximately 3.60 dollars to 4 dollars. Consolidated same store sales are currently expected to be approximately flat to an increase of 2 percent, compared to a 3.7 percent increase in 2019.

The company expects to open nine new Dick’s Sporting Goods stores and six new Golf Galaxy stores in 2020. The company also expects to relocate 14 Dick’s Sporting Goods stores and relocate three Golf Galaxy stores in 2020.

Picture:Facebook/Dick's Sporting Goods