Dick's Sporting Goods, Inc. reported a modest gain in first-quarter earnings, in line with expectations. Adjusted for the shifted calendar due to the 53rd week in 2012, consolidated same store sales decreased 3.8 percent, compared to our guidance of an approximate 1 to 2 percent decrease. First quarter 2012 consolidated same store sales increased 8.4 percent. Shifted same store sales in the first quarter of 2013 for Dick's Sporting Goods decreased 3.2 percent and Golf Galaxy sales decreased 11.8 percent.
First quarter 2012 consolidated same store sales increased 8.4
percent. Unshifted consolidated same store sales decreased 1.7 percent,
compared to our guidance of approximately flat to a 1 percent increase,
consisting of a 1.3 percent decrease at Dick's Sporting Goods and a 7.4
percent decrease at Golf Galaxy. E-commerce penetration was 5.8 percent
of total sales.
Net sales for the first quarter of 2013 increased 4.1 percent to $1.3 billion.
company reported consolidated non-GAAP net income for the first quarter
ended May 4, 2013 of $60.5 million, or 48 cents per diluted share,
compared to the company's expectations provided on March 11, 2013 of 47
to 49 cents per diluted share. For the first quarter ended April 28,
2012, the company reported consolidated net income of $57.2 million, or
45 cents per diluted share.
On a GAAP basis, the company reported
consolidated net income for the first quarter ended May 4, 2013 of
$64.8 million, or 52 cents per diluted share. GAAP results include an
after-tax increase to net income of $4.3 million, or 4 cents per diluted
share, resulting from an estimated partial recovery of its previously
impaired JJB investment.
The company reaffirms full-year guidance.
the first quarter, we generated earnings in line with our original
guidance, but were not pleased with our sales results, which came in
below our expectations," said Edward W. Stack, chairman and CEO. "To
drive sales and preserve margins in the near-term, we will work with our
vendor partners, particularly in golf, to provide value offerings; we
will aggressively execute our store remodel program, with approximately
75 percent of the identified stores expected to be completed by the end
of the second quarter; and we will continue to tightly manage clearance
inventory, which has declined meaningfully."
"Over the long-term, we have significant opportunity to profitably grow
our business by doubling the size of our store base, aggressively
building our eCommerce business, and further strengthening our
In the first
quarter, the company opened two new Dick's Sporting Goods stores. As of
May 4, 2013, the company operated 520 Dick's Sporting Goods stores in 44
states, with approximately 28.3 million square feet and 81 Golf Galaxy
stores in 30 states, with approximately 1.4 million square feet.
company ended the first quarter of 2013 with $114 million in cash and
cash equivalents as compared to $521 million at the end of the first
quarter of 2012. The company did not have any outstanding borrowings
under its $500 million revolving credit facility. Over the course of
the past twelve months, the company utilized capital to fund shares
purchased pursuant to share repurchase programs, pay quarterly
dividends, purchase its store support center, acquire intellectual
property rights to the Field & Stream brand, build a distribution
center and fund its $246 million special dividend.
square foot was 2.5 percent higher at the end of the first quarter of
2013 as compared to the end of the first quarter of 2012, while
clearance inventory per square foot decreased 7.4 percent during the
On May 20, 2013, the
company's Board of Directors authorized and declared a quarterly
dividend in the amount of $0.125 per share on the company's Common Stock
and Class B Common Stock. The dividend is payable in cash on June 28,
2013 to stockholders of record at the close of business on June 7, 2013.
Share Repurchase Program
March 7, 2013, the company's Board of Directors authorized a five-year
share repurchase program of up to $1 billion of the company's common
stock. In the first quarter, the company repurchased 1.7 million shares
of its common stock at an average cost of $47.41 per share, for a total
cost of $80.6 million. The company financed the repurchased shares
from cash on hand.
Current 2013 Outlook
company's current outlook for 2013 is based on current expectations and
includes "forward-looking statements" within the meaning of Section 27A
of the Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934, as described later in this release. Although the company
believes that the expectations and other comments reflected in such
forward-looking statements are reasonable, it can give no assurance that
such expectations or comments will prove to be correct.
Full Year 2013 – (52 Week Year) Comparisons to Fiscal 2012 – (53 Week Year)
on an estimated 126 million diluted shares outstanding, the company
currently anticipates reporting consolidated non-GAAP earnings per
diluted share of approximately $2.84 to 2.86, excluding the partial
recovery of a previously impaired asset. For the 53 weeks ended
February 2, 2013, the company reported consolidated non-GAAP earnings
per diluted share of $2.53, excluding an impairment charge. The 53rd
week in fiscal 2012 contributed approximately $0.03 to earnings per
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 a 4.3 percent increase in fiscal
The company expects to open approximately 40 new Dick's
Sporting Goods stores, relocate one Dick's Sporting Goods store and
complete four full and 75 partial remodels of Dick's Sporting Goods
stores in 2013. The company also expects to open one new Golf Galaxy
store and relocate one Golf Galaxy store in 2013, both of which will be
in the new, larger format.
The company expects to open
approximately two new True Runner stores and approximately two new Field
& Stream stores in 2013.
Second Quarter 2013
on an estimated 126 million diluted shares outstanding, the company
currently anticipates reporting consolidated earnings per diluted share
of approximately $0.75 to 0.77 in the second quarter of 2013, compared
to second quarter 2012 non-GAAP earnings per diluted share of $0.65. On
a GAAP basis, the company reported consolidated earnings per diluted
share of $0.43 in the second quarter of 2012.
Consolidated same store
sales adjusted for the shifted calendar, due to the 53rd week in 2012,
are currently expected to increase approximately 2 to 3 percent in the
second quarter of 2013, or approximately 3.5 to 4.5 percent on an
unshifted basis, as compared to a 3.8 percent increase in the second
quarter of 2012.
The company expects to open approximately seven new Dick's Sporting Goods stores in the second quarter of 2013.
2013, the company anticipates capital expenditures to be approximately
$299 million on a gross basis and approximately $258 million on a net
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