Trade Resources Company News Dick's Sporting Goods Net Sales for The 14-Week Quarter of 2012 Increased by 12.0%

Dick's Sporting Goods Net Sales for The 14-Week Quarter of 2012 Increased by 12.0%

Dick's Sporting Goods, Inc. the largest U.S.-based full-line sporting goods retailer, reported sales and earnings results for the fourth quarter and full year ended February 2, 2013.

Fourth Quarter Results (14 weeks compared to 13 weeks last year)

The Company reported consolidated net income for the 14 weeks ended February 2, 2013 of $129.7 million, or $1.03 per diluted share, compared to the Company's expectations provided on November 13, 2012 of $1.03 to 1.05 per diluted share. The fourth quarter includes approximately $0.03 per diluted share for the 14th week. For the fourth quarter ended January 28, 2012, the Company reported consolidated net income of $111.1 million, or $0.88 per diluted share.

Net sales for the 14-week quarter of 2012 increased by 12.0% to $1.8 billion, driven by the growth of our store network, a 1.2% increase in consolidated same store sales on a 13-week to 13-week basis, and the inclusion of the 14th week of sales.

The 1.2% consolidated same store sales increase consisted of a 2.2% decrease at Dick's Sporting Goods stores, a 1.3% increase at Golf Galaxy and a 54.2% increase in the eCommerce business.  By chain, including eCommerce business, Dick's Sporting Goods same store sales increased 1.2% and Golf Galaxy same store sales increased 1.3%.

"In the fourth quarter, we experienced continued momentum in athletic footwear and apparel along with strong sales in hunting that exceeded our expectations. These increases were partially offset by lower-than-anticipated sales in outerwear and cold weather accessories, as well as a significant decline in the fitness category," said Edward W. Stack, Chairman and CEO.

"As a result of the unusually warm weather conditions, including during peak selling periods in December, we significantly reduced our inventory levels of cold weather merchandise to align with lower consumer demand and avoid carrying over excess inventory after a second year in a row of warm weather. While this was a prudent move that enabled us to effectively manage inventory and protect our margins, it did limit our ability to capture sales in January when temperatures dropped and snowfall increased."

Mr. Stack continued, "In fitness, the significant comp decline was a result of lower large-equipment sales like treadmills and ellipticals. We understand the issues that contributed to the sales decline and are taking action to correct them."

New Stores

In the fourth quarter, the Company opened seven new Dick's Sporting Goods stores, relocated one Dick's Sporting Goods store and repositioned one Golf Galaxy store. These stores are listed in a table later in the release under the heading "Store Count and Square Footage."

As of the end of the fourth quarter, the Company operated 518 Dick's Sporting Goods stores in 44 states, with approximately 28.2 million square feet and 81 Golf Galaxy stores in 30 states, with approximately 1.4 million square feet.

Balance Sheet

The Company ended fiscal 2012 with $345 million in cash and cash equivalents as compared to $734 million at the end of fiscal 2011, and 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 its $200 million share repurchase program, pay quarterly dividends, purchase its store support center, invest in JJB Sports, acquire intellectual property rights to the Top-Flite and Field & Stream brands,  build a distribution center and fund its $246 million special dividend.

Inventory per square foot was 0.7% higher at the end of the fourth quarter of 2012 as compared to the end of the fourth quarter of 2011.

Full Year 2012 Results (53 weeks compared to 52 weeks last year)

The Company reported consolidated non-GAAP net income for the 53 weeks ended February 2, 2013 of $318.3 million, or $2.53 per diluted share, excluding an impairment charge and including approximately $0.03 per diluted share for the 53rd week.  For the 52 weeks ended January 28, 2012, the Company reported consolidated non-GAAP net income of $253.9 million, or $2.02 per diluted share.

On a GAAP basis, the Company reported consolidated net income for the 53 weeks ended February 2, 2013 of $290.7 million, or $2.31 per diluted share. For the 52 weeks ended January 28, 2012, the Company reported consolidated net income of $263.9 million, or $2.10 per diluted share.  The GAAP to non-GAAP reconciliation is included in a table later in the release under the heading "Non-GAAP Net Income and Earnings Per Share Reconciliation."

Net sales for the 53 weeks ended February 2, 2013 increased 12.0% from last year's 52-week period to $5.8 billion primarily due to a 4.3% increase in consolidated same store sales on a 52-week to 52-week comparable basis and the growth of the Company's store network.

"In 2012, we made several important investments for the future, including adding locations, acquiring established brands, developing and testing retail concepts, further building omni-channel capabilities, and creating new marketing strategies," said Mr. Stack.

"All of these investments have strengthened our foundation and position us for continued growth. We're optimistic about our outlook for the coming year and excited about our long-term prospects for the future."

Source: http://www.fibre2fashion.com/news/apparel-news/newsdetails.aspx?news_id=122096
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Sales up 12% at Dick's Sporting Goods in FY’13