Ecommerce sales accounted for 6.3% of total revenue at DICK'S Sporting Goods, Inc., the largest U.S. based full-line omni-channel sporting, including apparel goods retailer in the second quarter ended August 2, 2014, up from 5.6% in the second quarter last year.
Net sales for the second quarter of 2014 rose 10.3% from a year earlier to $1.7 billion, while consolidated same store sales increased 3.2%, compared to its guidance of a growth between 1 to 3%.
Same store sales for DICK'S Sporting Goods went up 4.1%, while that of Golf Galaxy fell 9.3%.
DICK’S reported consolidated non-GAAP net income for the second quarter 2014 of $81.7 million, or $0.67 per diluted share, excluding golf restructuring charges, compares favourably with the higher end of its May 2014 guidance of $0.62 to 0.67 per diluted share.
For the second quarter ended August 3, 2013, the retailer reported consolidated non-GAAP net income of $88.9 million, or $0.71 per diluted share, excluding an asset impairment charge.
CEO Edward Stack said, “Our second quarter results came in at the high end of our expectations and as anticipated, the golf and hunting businesses continued to experience negative comps.
“However, excluding these two categories, the remainder of the business delivered a 7.8% same store sales increase. We saw significant strength in several areas, including categories that have received more space within our stores, such as women's and youth athletic apparel", he added.
In the second quarter 2014, DICK’S recorded pre-tax charges totalling $20.4 million related to the restructuring of its golf business. These actions were taken to align the cost structure with current and expected trends in golf.
Pre-tax charges include; a $14.3 million non-cash impairment of trademarks and store assets used in the Company's golf business; severance charges totalling $3.7 million relating to the elimination of specific golf positions from the DICK'S stores, and from the combination of DICK'S golf and Golf Galaxy corporate and administrative functions and a $2.4 million write-down of golf-related inventory.
DICK’S ended the second quarter of 2014 with $100 million in cash and cash equivalents and no outstanding borrowings under its revolving credit facility.
This compares to cash and cash equivalents of approximately $135 million and no outstanding borrowings under its $500 million revolving credit facility at the end of the second quarter of 2013.
Over the course of the past twelve months, DICK’S utilized capital to invest in omni-channel growth, including Field & Stream stores, and returned over $360 million to shareholders through share repurchases and quarterly dividends.
Total inventory was 11.2% higher at the end of the second quarter of 2014 as compared to the end of the second quarter of 2013.
Approximately 2% of inventory growth reflects inventory to support Field & Stream, including the seven new stores scheduled to open in the third quarter.
