PITTSBURGH, May 26, 2021 /PRNewswire/ -- DICK'S Sporting
Goods, Inc. (NYSE: DKS), the largest U.S. based full-line
omni-channel sporting goods retailer, today reported sales and
earnings results for the first quarter ended May 1, 2021.
First Quarter Results
Net sales for the first quarter of 2021 were $2.92 billion, an increase of 119% compared to
the first quarter of 2020, or a 52% increase compared to the first
quarter of 2019. The increase compared to last year's quarter was
driven by a 115% increase in consolidated same store sales, which
included an increase in eCommerce sales of 14%. eCommerce sales
increased 110% in last year's first quarter and eCommerce
penetration has grown from 13% of total net sales in the first
quarter of 2019 to 20% for the first quarter of 2021. First quarter
2020 consolidated same store sales decreased 29.5%, driven by
temporary store closures that started on March 18th, 2020 to help prevent the
spread of COVID-19. First quarter 2019 consolidated same store
sales were flat.
The Company reported consolidated net income for the first
quarter ended May 1, 2021 of $361.8
million, or $3.41 per diluted
share, compared to a consolidated net loss for the first quarter
ended May 2, 2020 of $143.4 million, or $1.71 per diluted share. The Company incurred
approximately $13 million of pre-tax
incremental safety costs in response to COVID-19 during the 13
weeks ended May 1, 2021. During last
year's quarter, the Company incurred approximately $62 million of pre-tax expenses in response to
COVID-19. The Company reported consolidated net income for the
first quarter ended May 4, 2019 of
$57.5 million, or $0.61 per diluted share.
On a non-GAAP basis, the Company reported consolidated net
income for the quarter ended May 1, 2021 of $367.2 million, or $3.79 per diluted share, which excluded non-cash
amortization of the debt discount associated with the Company's
convertible senior notes and included the share impact of the
convertible note hedge purchased by the Company, which is
antidilutive for GAAP purposes. For the quarter ended May 4, 2019, non-GAAP consolidated net income was
$58.4 million, or $0.62 per diluted share. First quarter 2019
non-GAAP results exclude a non-cash asset impairment and the
settlement of a litigation contingency. The GAAP to non-GAAP
reconciliations are included in a table later in the release under
the heading "GAAP to Non-GAAP Reconciliations."
"We are in a great lane right now, and 2021 will be our boldest
and most transformational year in the Company's history. We believe
the future of retail is experiential, powered by technology and a
world-class omni-channel operating model. Importantly, we are
reimagining the athlete experience, both across our core business
and through new concepts that we have been working on for the past
several years, which will collectively propel our growth in the
future," said Ed Stack, Executive
Chairman and Chief Merchandising Officer.
"We are very pleased to deliver another exceptionally strong
quarter, achieving record first quarter sales and our highest-ever
quarterly earnings, both significantly exceeding our expectations.
The strength of our diverse category portfolio, supply chain,
technology capabilities and omni-channel execution helped us
continue to capitalize on strong consumer demand across golf,
outdoor activities, home fitness and active lifestyle. We also saw
a resurgence in our team sports business as kids began to get back
out on the field after a year in which many youth sports activities
were delayed or cancelled," said Lauren
Hobart, President and Chief Executive Officer. "Looking
ahead, we remain very enthusiastic about our business and are
pleased to increase our full year sales and earnings outlook."
Balance Sheet
The Company ended the first quarter
of 2021 with approximately $1.86 billion in cash and cash equivalents
and no outstanding borrowings under its $1.855 billion revolving credit facility. In
April 2020, the Company issued
$575 million aggregate principal
amount of 3.25% convertible senior notes, which added over
$500 million of net proceeds to its
cash position.
Total inventory decreased 4.0% at the end of the first quarter
of 2021 compared to the end of the first quarter of 2020.
Capital Allocation
On May 21, 2021, the Company's
Board of Directors authorized and declared a quarterly dividend in
the amount of $0.3625 per share on
the Company's Common Stock and Class B Common Stock. The dividend
is payable in cash on June 25, 2021
to stockholders of record at the close of business on June 11, 2021.
During the first quarter of 2021, the Company repurchased 1.03
million shares of its common stock at an average price of
$74.59 per share, for a total cost of
$76.8 million. Approximately
$954 million remains under an
authorization that extends through June
2024.
For the 13 weeks ended May 1,
2021, capital expenditures totaled $71.1 million on a gross basis, or $57.2 million net of construction allowances
provided by landlords. For the 13 weeks ended May 2, 2020, capital expenditures totaled
$59.6 million on a gross basis, or
$51.0 million net of construction
allowances provided by landlords.
Full Year 2021 Outlook
The Company's Full Year Outlook for 2021 is presented below:
|
|
|
2021
Outlook
|
|
|
|
Low
End
|
High
End
|
Midpoint %
Change
|
(in millions,
except per share amounts)
|
2019
|
2020
|
2021
(E)
|
vs
2019
|
vs
2020
|
Net Sales
|
$
|
8,751
|
|
$
|
9,584
|
|
$
|
10,515
|
|
$
|
10,806
|
|
22
|
%
|
11
|
%
|
Consolidated same
store sales
|
3.7
|
%
|
9.9
|
%
|
8.0
|
%
|
11.0
|
%
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
$
|
408
|
|
$
|
712
|
|
$
|
990
|
|
$
|
1,080
|
|
154
|
%
|
45
|
%
|
% of Net
Sales
|
4.7
|
%
|
7.4
|
%
|
9.4
|
%
|
10.0
|
%
|
|
|
Income before income
taxes - non-GAAP
|
$
|
440
|
|
$
|
733
|
|
$
|
1,020
|
|
$
|
1,110
|
|
142
|
%
|
45
|
%
|
% of Net Sales -
non-GAAP
|
5.0
|
%
|
7.6
|
%
|
9.7
|
%
|
10.3
|
%
|
|
|
|
|
|
|
|
|
|
Earnings per diluted
share
|
$
|
3.34
|
|
$
|
5.72
|
|
$
|
7.05
|
|
$
|
7.68
|
|
120
|
%
|
29
|
%
|
Earnings per diluted
share - non-GAAP
|
$
|
3.69
|
|
$
|
6.12
|
|
$
|
8.00
|
|
$
|
8.70
|
|
126
|
%
|
36
|
%
|
Weighted average
diluted shares
|
89
|
|
93
|
|
107
|
|
107
|
|
|
|
Weighted average
diluted shares - non-GAAP
|
89
|
|
89
|
|
97
|
|
97
|
|
|
|
|
|
|
|
|
|
|
Gross capital
expenditures
|
$
|
217
|
|
$
|
224
|
|
$
|
370
|
|
$
|
395
|
|
|
|
Net capital
expenditures
|
$
|
180
|
|
$
|
167
|
|
$
|
300
|
|
$
|
325
|
|
|
|
- Due to the uneven nature of sales and earnings in 2020, the
Company planned 2021 off of a 2019 baseline and for the same reason
believes it is important to compare 2021 against both 2019 and
2020.
- The Company's non-GAAP outlook for 2021 and its non-GAAP
results for 2020 exclude amortization of the non-cash debt discount
on the Company's convertible senior notes and diluted shares that
will be offset at settlement by shares delivered from the
convertible note hedge purchased by the Company. Non-GAAP results
for 2019 exclude hunt restructuring charges, a gain on the sale of
subsidiaries, non-cash asset impairments and the favorable
settlement of a litigation contingency.
- As a result of actions taken to support its teammates as well
as impacts from its temporary store closures in 2020, the Company
incurred approximately $175 million
of pre-tax incremental teammate compensation and safety costs. For
fiscal 2021, the Company incurred approximately $13 million of COVID-related safety costs in the
first quarter and in light of the latest CDC guidance, expects such
costs to decline significantly beginning in the second quarter.
- The Company expects to open six new DICK'S Sporting Goods
stores and eight specialty concept stores in 2021, including the
conversion of two former Field & Stream stores into Public
Lands stores. The Company also expects to relocate 11 DICK'S
Sporting Goods stores in 2021.
- The Company plans to repurchase a minimum of $200 million of its common shares in 2021.
Conference Call Info
The Company will host a conference call today at 10:00 a.m.
Eastern Time to discuss the first quarter results. Investors will
have the opportunity to listen to the earnings conference call over
the internet through the Company's website located at
investors.DICKS.com. To listen to the live call, please go to the
website at least fifteen minutes early to register, download, and
install any necessary audio software. For those who cannot listen
to the live webcast, it will be archived on the Company's website
for approximately twelve months.
Non-GAAP Financial Measures
In addition to reporting the Company's financial results in
accordance with generally accepted accounting principles ("GAAP"),
the Company reports certain financial results that differ from what
is reported under GAAP. These non-GAAP financial measures include
consolidated non-GAAP net income, non-GAAP earnings per diluted
share, non-GAAP income before income taxes, non-GAAP diluted shares
outstanding, and net capital expenditures, which management
believes provides investors with useful supplemental information to
evaluate the Company's ongoing operations and to compare with past
and future periods. Management believes that excluding non-cash
debt discount amortization from its convertible senior notes and
including the share impact from the convertible note hedge is
useful to investors because it provides a more complete view of the
economics of the transaction. Management also uses certain non-GAAP
measures internally for forecasting, budgeting, and measuring its
operating performance. These measures should be viewed as
supplementing, and not as an alternative or substitute for, the
Company's financial results prepared in accordance with GAAP. The
methods used by the Company to calculate its non-GAAP financial
measures may differ significantly from methods used by other
companies to compute similar measures. As a result, any non-GAAP
financial measures presented herein may not be comparable to
similar measures provided by other companies. A reconciliation of
the Company's non-GAAP measures to the most directly comparable
GAAP financial measures are provided below and on the Company's
website at investors.DICKS.com.
Fiscal 2021 Consolidated Same Store Sales
Consolidated same store sales include stores that were
temporarily closed during fiscal 2020 as a result of the COVID-19
pandemic. The method of calculating consolidated same store sales
varies across the retail industry, including the treatment of
temporary store closures as a result of COVID-19. Accordingly, our
method of calculating this metric may not be the same as other
retailers' methods. For additional information on consolidated same
store sales, please see our most recent Annual Report on Form 10-K
for the fiscal year ended January 30,
2021, filed with the Securities and Exchange Commission on
March 24, 2021.
Forward-Looking Statements Involving Known and Unknown Risks
and Uncertainties
This release contains forward-looking statements made pursuant
to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements are subject to
risks and uncertainties and change based on various important
factors, many of which may be beyond the Company's control. The
Company's future performance and actual results may differ
materially from those expressed or implied in such forward-looking
statements. Forward-looking statements should not be relied upon by
investors as a prediction of actual results. Forward-looking
statements include statements regarding, among other things, the
Company's future performance, including 2021 outlook for earnings
and sales; capital expenditures; share repurchases and dividends;
and anticipated store openings, relocations, and closures.
Factors that could cause actual results to differ materially
from those expressed or implied in any forward-looking statements
include, but are not limited to: the impact on our business,
operations and financial results due to the duration and scope of
the COVID-19 pandemic, including whether there are periods of
increases in the number of COVID-19 cases in areas in which we
operate, and the restrictions imposed by federal, state, and local
governments in response to the pandemic; changes in consumer
discretionary spending; the extent to which changes in consumer
demand due to the COVID-19 pandemic will continue and whether new
trends will emerge after the impact of the COVID-19 pandemic
subsides; store closures and other impacts to our business
resulting from civil disturbances; investments in omni-channel
growth not producing the anticipated benefits within the expected
time-frame or at all; risks relating to private brands and new
retail concepts; investments in business transformation initiatives
not producing the anticipated benefits within the expected
time-frame or at all; the amount devoted to strategic investments
and the timing and success of those investments; the impact of
continuing to remove the hunt department from stores; inventory
turn; changes in the competitive market and competition amongst
retailers, including an increase in promotional activity; changes
in consumer demand or shopping patterns and the ability to identify
new trends and have the right trending products in stores and
online; the impact of a high rate of inflation on our business;
changes in existing tax, labor, foreign trade and other laws and
regulations, including those imposing new taxes, surcharges, or
tariffs; limitations on the availability of attractive retail store
sites; unauthorized disclosure of sensitive or confidential
customer information; website downtime, disruptions or other
problems with the eCommerce platform, including interruptions,
delays or downtime caused by high volumes of users or transactions,
deficiencies in design or implementation, or platform enhancements;
disruptions or other problems with information systems; factors
affecting vendors, including supply chain and currency risks; the
loss of key personnel, including Edward W.
Stack, Executive Chairman and Chief Merchandising Officer,
or Lauren Hobart, President and
Chief Executive Officer; developments with sports leagues,
professional athletes or sports superstars, including disruptions
and cancellations due to COVID-19; weather-related disruptions and
seasonality of the Company's business; and risks associated with
being a controlled company.
For additional information on these and other factors that could
affect the Company's actual results, see the risk factors set forth
in the Company's filings with the Securities and Exchange
Commission ("SEC"), including the most recent Annual Report filed
with the SEC on March 24, 2021. The Company disclaims and
does not undertake any obligation to update or revise any
forward-looking statement in this press release, except as required
by applicable law or regulation. Forward-looking statements
included in this release are made as of the date of this
release.
About DICK'S Sporting Goods, Inc.
Founded in 1948, DICK'S Sporting Goods is a leading omni-channel
sporting goods retailer offering an extensive assortment of
authentic, high-quality sports equipment, apparel, footwear and
accessories. As of May 1, 2021, the Company operated 730
DICK'S Sporting Goods locations across the United States, serving and inspiring
athletes and outdoor enthusiasts to achieve their personal best
through a combination of its dedicated teammates, in-store services
and unique specialty shop-in-shops dedicated to Team Sports,
Athletic Apparel, Golf, Outdoor, Fitness and Footwear.
Headquartered in Pittsburgh,
DICK'S also owns and operates Golf Galaxy and Field & Stream
specialty stores, as well as GameChanger, a youth sports mobile app
for scheduling, communications, live scorekeeping and video
streaming. DICK'S offers its products through a dynamic eCommerce
platform that is integrated with its store network and provides
athletes with the convenience and expertise of a 24-hour
storefront. For more information, visit the Investor Relations page
at dicks.com.
Contacts:
Investor Relations:
Nate Gilch, Senior Director of
Investor Relations
DICK'S Sporting Goods, Inc.
investors@dcsg.com
(724) 273-3400
Media Relations:
(724) 273-5552 or press@dcsg.com
Category: Earnings
DICK'S SPORTING
GOODS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF OPERATIONS - UNAUDITED
|
(In thousands,
except per share data)
|
|
|
|
13 Weeks
Ended
|
|
|
May 1,
2021
|
|
%
of
Sales(3)
|
|
May 2,
2020
|
|
%
of
Sales(3)
|
|
May 4,
2019 (2)
|
|
%
of
Sales(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
2,918,719
|
|
|
100.00%
|
|
$
|
1,333,228
|
|
|
100.00
|
%
|
|
$
|
1,920,677
|
|
|
100.00
|
%
|
Cost of goods sold,
including
occupancy and distribution
costs (1)
|
|
1,830,092
|
|
|
62.70
|
|
1,113,900
|
|
|
83.55
|
|
1,356,868
|
|
|
70.65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
1,088,627
|
|
|
37.30
|
|
219,328
|
|
|
16.45
|
|
563,809
|
|
|
29.35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general
and
administrative expenses
|
|
608,294
|
|
|
20.84
|
|
403,221
|
|
|
30.24
|
|
487,158
|
|
|
25.36
|
Pre-opening
expenses
|
|
4,524
|
|
|
0.15
|
|
2,280
|
|
|
0.17
|
|
578
|
|
|
0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM
OPERATIONS
|
|
475,809
|
|
|
16.30
|
|
(186,173)
|
|
|
(13.96)
|
|
76,073
|
|
|
3.96
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
13,381
|
|
|
0.46
|
|
8,045
|
|
|
0.60
|
|
3,081
|
|
|
0.16
|
Other (income)
expense
|
|
(7,350)
|
|
|
(0.25)
|
|
13,522
|
|
|
1.01
|
|
(6,738)
|
|
|
(0.35)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS)
BEFORE
INCOME TAXES
|
|
469,778
|
|
|
16.10
|
|
(207,740)
|
|
|
(15.58)
|
|
79,730
|
|
|
4.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
(benefit from)
income taxes
|
|
108,022
|
|
|
3.70
|
|
(64,318)
|
|
|
(4.82)
|
|
22,205
|
|
|
1.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
(LOSS)
|
|
$
|
361,756
|
|
|
12.39%
|
|
$
|
(143,422)
|
|
|
(10.76%)
|
|
$
|
57,525
|
|
|
3.00
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS)
PER
COMMON SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
4.27
|
|
|
|
|
$
|
(1.71)
|
|
|
|
|
$
|
0.62
|
|
|
|
Diluted
|
|
$
|
3.41
|
|
|
|
|
$
|
(1.71)
|
|
|
|
|
$
|
0.61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
84,750
|
|
|
|
|
83,734
|
|
|
|
|
92,887
|
|
|
|
Diluted
|
|
106,010
|
|
|
|
|
83,734
|
|
|
|
|
94,388
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Cost of goods sold includes: the
cost of merchandise (inclusive of vendor allowances, inventory
shrinkage and inventory write-downs for the lower of cost and net
realizable value); freight; distribution; shipping; and store
occupancy costs. The Company defines merchandise margin as net
sales less the cost of merchandise sold.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Due to the uneven nature of sales
and earnings in 2020, the Company planned 2021 off of a 2019
baseline and for the same reason believes it is important to
compare 2021 against both 2019 and 2020.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Column does not add due to
rounding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DICK'S SPORTING
GOODS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS - UNAUDITED
|
(In
thousands)
|
|
|
|
May 1,
2021
|
|
May 2,
2020
|
|
January
30,
2021
|
ASSETS
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
1,858,737
|
|
|
$
|
1,484,004
|
|
|
$
|
1,658,067
|
|
Accounts receivable,
net
|
|
67,145
|
|
|
100,895
|
|
|
53,149
|
|
Income taxes
receivable
|
|
2,803
|
|
|
56,291
|
|
|
6,396
|
|
Inventories,
net
|
|
2,012,054
|
|
|
2,096,964
|
|
|
1,953,568
|
|
Prepaid expenses and
other current assets
|
|
100,586
|
|
|
102,249
|
|
|
88,470
|
|
Total current
assets
|
|
4,041,325
|
|
|
3,840,403
|
|
|
3,759,650
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
1,319,774
|
|
|
1,369,873
|
|
|
1,300,265
|
|
Operating lease
assets
|
|
2,150,664
|
|
|
2,260,189
|
|
|
2,149,913
|
|
Intangible assets,
net
|
|
89,119
|
|
|
93,676
|
|
|
90,051
|
|
Goodwill
|
|
245,857
|
|
|
245,857
|
|
|
245,857
|
|
Deferred income
taxes
|
|
47,491
|
|
|
14,263
|
|
|
51,475
|
|
Other
assets
|
|
172,350
|
|
|
128,289
|
|
|
155,648
|
|
TOTAL
ASSETS
|
|
$
|
8,066,580
|
|
|
$
|
7,952,550
|
|
|
$
|
7,752,859
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
1,239,503
|
|
|
$
|
844,991
|
|
|
$
|
1,258,093
|
|
Accrued
expenses
|
|
499,071
|
|
|
317,026
|
|
|
518,134
|
|
Operating lease
liabilities
|
|
468,318
|
|
|
505,678
|
|
|
472,670
|
|
Income taxes
payable
|
|
141,868
|
|
|
2,062
|
|
|
40,997
|
|
Deferred revenue and
other liabilities
|
|
238,751
|
|
|
217,223
|
|
|
260,304
|
|
Total current
liabilities
|
|
2,587,511
|
|
|
1,886,980
|
|
|
2,550,198
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
|
|
Revolving credit
borrowings
|
|
—
|
|
|
1,429,000
|
|
|
—
|
|
Convertible
senior notes due 2025
|
|
425,799
|
|
|
398,121
|
|
|
418,493
|
|
Long-term operating
lease liabilities
|
|
2,253,883
|
|
|
2,428,133
|
|
|
2,259,308
|
|
Deferred income
taxes
|
|
—
|
|
|
4,362
|
|
|
—
|
|
Other long-term
liabilities
|
|
200,663
|
|
|
133,929
|
|
|
185,326
|
|
Total long-term
liabilities
|
|
2,880,345
|
|
|
4,393,545
|
|
|
2,863,127
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY:
|
|
|
|
|
|
|
Common
stock
|
|
610
|
|
|
598
|
|
|
612
|
|
Class B common
stock
|
|
237
|
|
|
243
|
|
|
237
|
|
Additional paid-in
capital
|
|
1,448,892
|
|
|
1,364,568
|
|
|
1,442,298
|
|
Retained
earnings
|
|
3,394,067
|
|
|
2,475,065
|
|
|
3,064,702
|
|
Accumulated other
comprehensive income (loss)
|
|
15
|
|
|
(183)
|
|
|
(49)
|
|
Treasury stock, at
cost
|
|
(2,245,097)
|
|
|
(2,168,266)
|
|
|
(2,168,266)
|
|
Total stockholders'
equity
|
|
2,598,724
|
|
|
1,672,025
|
|
|
2,339,534
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
$
|
8,066,580
|
|
|
$
|
7,952,550
|
|
|
$
|
7,752,859
|
|
|
|
|
|
|
|
|
DICK'S SPORTING
GOODS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS - UNAUDITED
|
(In
thousands)
|
|
|
|
13 Weeks
Ended
|
|
|
May 1,
2021
|
|
May 2,
2020
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
Net income
(loss)
|
|
$
|
361,756
|
|
|
$
|
(143,422)
|
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operating activities:
|
|
|
|
|
Depreciation,
amortization, and other
|
|
78,366
|
|
|
86,081
|
|
Amortization of
convertible notes discount and issuance costs
|
|
7,306
|
|
|
1,094
|
|
Non-cash lease
costs
|
|
(27,276)
|
|
|
69,560
|
|
Deferred income
taxes
|
|
3,984
|
|
|
(4,676)
|
|
Stock-based
compensation
|
|
12,870
|
|
|
9,235
|
|
Changes in assets and
liabilities:
|
|
|
|
|
Accounts
receivable
|
|
(12,439)
|
|
|
(14,745)
|
|
Inventories
|
|
(58,486)
|
|
|
105,311
|
|
Prepaid expenses and
other assets
|
|
(9,603)
|
|
|
(13,190)
|
|
Accounts
payable
|
|
38,057
|
|
|
(167,707)
|
|
Accrued
expenses
|
|
(44,310)
|
|
|
(90,047)
|
|
Income taxes payable /
receivable
|
|
104,464
|
|
|
(58,922)
|
|
Construction
allowances provided by landlords
|
|
13,902
|
|
|
8,638
|
|
Deferred revenue and
other liabilities
|
|
(21,240)
|
|
|
(2,063)
|
|
Net cash provided by
(used in) operating activities
|
|
447,351
|
|
|
(214,853)
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
Capital
expenditures
|
|
(71,097)
|
|
|
(59,591)
|
|
Deposits and
purchases of other assets
|
|
(2,338)
|
|
|
—
|
|
Net cash used in
investing activities
|
|
(73,435)
|
|
|
(59,591)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
Revolving credit
borrowings
|
|
—
|
|
|
1,291,700
|
|
Revolving credit
repayments
|
|
—
|
|
|
(86,800)
|
|
Proceeds from issuance
of convertible notes
|
|
—
|
|
|
575,000
|
|
Payments for purchase
of bond hedges
|
|
—
|
|
|
(161,057)
|
|
Proceeds from issuance
of warrants
|
|
—
|
|
|
105,225
|
|
Transaction costs paid
in connection with convertible notes issuance
|
|
—
|
|
|
(14,341)
|
|
Payments on other long-term debt and finance lease
obligations
|
|
(220)
|
|
|
(199)
|
|
Proceeds from exercise of stock options
|
|
12,333
|
|
|
—
|
|
Minimum tax
withholding requirements
|
|
(18,601)
|
|
|
(3,390)
|
|
Cash paid for treasury
stock
|
|
(76,841)
|
|
|
—
|
|
Cash dividend paid to
stockholders
|
|
(33,334)
|
|
|
(28,070)
|
|
(Decrease) increase in
bank overdraft
|
|
(56,647)
|
|
|
11,109
|
|
Net cash (used in)
provided by financing activities
|
|
(173,310)
|
|
|
1,689,177
|
|
EFFECT OF EXCHANGE
RATE CHANGES ON CASH AND CASH
EQUIVALENTS
|
|
64
|
|
|
(63)
|
|
NET INCREASE IN CASH
AND CASH EQUIVALENTS
|
|
200,670
|
|
|
1,414,670
|
|
CASH AND CASH
EQUIVALENTS, BEGINNING OF PERIOD
|
|
1,658,067
|
|
|
69,334
|
|
CASH AND CASH
EQUIVALENTS, END OF PERIOD
|
|
$
|
1,858,737
|
|
|
$
|
1,484,004
|
|
Store Count and
Square Footage
|
|
The stores that
opened during the first quarter of 2021 are as follows:
|
|
Store
|
|
Market
|
|
Concept
|
Lewisville,
TX
|
|
Dallas
|
|
DICK'S Sporting
Goods
|
Summerlin,
NV
|
|
Las Vegas
|
|
DICK'S Sporting
Goods
|
The following
represents a reconciliation of beginning and ending stores and
square footage for the periods indicated:
|
|
Store
Count:
|
|
|
|
Fiscal
2021
|
|
Fiscal
2020
|
|
|
DICK'S
Sporting
Goods (1)
|
|
Specialty
Concept
Stores (2)
|
|
Total
|
|
DICK'S
Sporting
Goods
|
|
Specialty
Concept
Stores (2)
|
|
Total
|
Beginning
stores
|
|
728
|
|
|
126
|
|
|
854
|
|
|
726
|
|
|
124
|
|
|
850
|
|
Q1 New
stores
|
|
2
|
|
|
—
|
|
|
2
|
|
|
1
|
|
|
2
|
|
|
3
|
|
Closed
stores
|
|
—
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
2
|
|
Ending
stores
|
|
730
|
|
|
125
|
|
|
855
|
|
|
726
|
|
|
125
|
|
|
851
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Relocated
stores
|
|
3
|
|
|
—
|
|
|
3
|
|
|
3
|
|
|
1
|
|
|
4
|
|
Square
Footage:
|
(in
millions)
|
|
|
|
DICK'S
Sporting
Goods (1)
|
|
Specialty
Concept
Stores
|
|
Total
|
Q1 2020
|
|
38.4
|
|
|
3.4
|
|
|
41.8
|
|
Q2 2020
|
|
38.4
|
|
|
3.5
|
|
|
41.9
|
|
Q3 2020
|
|
38.7
|
|
|
3.6
|
|
|
42.3
|
|
Q4 2020
|
|
38.5
|
|
|
3.5
|
|
|
42.0
|
|
Q1 2021
|
|
38.7
|
|
|
3.4
|
|
|
42.1
|
|
|
|
(1)
|
Includes one
new DICK'S House of Sport store which was a relocation of a former
DICK'S Sporting Goods store.
|
(2)
|
Includes the
Company's Golf Galaxy and Field & Stream stores, as well as the
Company's outlet stores, excluding temporary locations. In some
markets the Company operates DICK'S Sporting Goods stores adjacent
to its specialty concept stores on the same property with a
pass-through for customers. The Company refers to this format as a
"combo store" and includes combo store openings within both the
DICK'S Sporting Goods and specialty concept store reconciliations,
as applicable. As of May 1, 2021, the Company operated 29
combo stores.
|
DICK'S SPORTING
GOODS, INC.
|
GAAP to NON-GAAP
RECONCILIATIONS - UNAUDITED
|
(in thousands,
except per share amounts)
|
|
Non-GAAP Net
Income and Earnings Per Share Reconciliations
|
(in thousands, except
per share amounts)
|
|
|
13 Weeks Ended May
1, 2021
|
|
|
|
|
|
|
|
|
Income from
operations
|
Interest
expense
|
Income before
income taxes
|
Net
income
(2)
|
Diluted
shares
outstanding
during
period
|
Earnings
per
diluted
share
|
GAAP Basis
|
$
|
475,809
|
|
$
|
13,381
|
|
$
|
469,778
|
|
$
|
361,756
|
|
106,010
|
|
$
|
3.41
|
|
% of Net
Sales
|
16.30
|
%
|
0.46
|
%
|
16.10
|
%
|
12.39
|
%
|
|
|
Convertible senior
notes (1)
|
—
|
|
(7,307)
|
|
7,307
|
|
5,407
|
|
(9,214)
|
|
|
Non-GAAP
Basis
|
$
|
475,809
|
|
$
|
6,074
|
|
$
|
477,085
|
|
$
|
367,163
|
|
96,796
|
|
$
|
3.79
|
|
% of Net
Sales
|
16.30
|
%
|
0.21
|
%
|
16.35
|
%
|
12.58
|
%
|
|
|
|
|
(1)
|
Amortization of the
non-cash debt discount on the Company's convertible senior notes
and diluted shares that will be offset at settlement by shares
delivered from the convertible note hedge purchased by the
Company.
|
(2)
|
The provision for
income taxes for non-GAAP adjustments was calculated at 26%, which
approximates the Company's blended tax rate.
|
|
13 Weeks Ended May
4, 2019
|
|
|
|
|
|
|
|
Selling,
general
and
administrative
expenses
|
Income before
income taxes
|
Net income
(3)
|
Diluted
shares
outstanding
during
period
|
Earnings
per diluted
share
|
GAAP Basis
|
$
|
487,158
|
|
$
|
79,730
|
|
$
|
57,525
|
|
94,388
|
|
$
|
0.61
|
|
% of Net
Sales
|
25.36
|
%
|
4.15
|
%
|
3.00
|
%
|
|
|
Non-cash asset
impairment (1)
|
(7,623)
|
|
7,623
|
|
5,641
|
|
|
|
Litigation
contingency settlement (2)
|
6,411
|
|
(6,411)
|
|
(4,744)
|
|
|
|
Non-GAAP
Basis
|
$
|
485,946
|
|
$
|
80,942
|
|
$
|
58,422
|
|
94,388
|
|
$
|
0.62
|
|
% of Net
Sales
|
25.30
|
%
|
4.21
|
%
|
3.04
|
%
|
|
|
|
|
(1)
|
Non-cash impairment
charge to reduce the carrying value of a corporate aircraft held
for sale to its fair market value.
|
(2)
|
Settlement of a
previously accrued litigation contingency.
|
(3)
|
The provision for
income taxes for non-GAAP adjustments was calculated at 26%, which
approximated the Company's blended tax rate.
|
|
52 Weeks Ended
January 30, 2021
|
|
|
|
|
|
|
|
|
Income from
operations
|
Interest
expense
|
Income
before
income taxes
|
Net
income
(2)
|
Diluted
shares
outstanding
during
period
|
Earnings
per
diluted
share
|
GAAP Basis
|
$
|
741,477
|
|
$
|
48,812
|
|
$
|
711,735
|
|
$
|
530,251
|
|
92,639
|
|
$
|
5.72
|
|
% of Net
Sales
|
7.74
|
%
|
0.51
|
%
|
7.43
|
%
|
5.53
|
%
|
|
|
Convertible senior
notes (1)
|
—
|
|
(21,581)
|
|
21,581
|
|
15,970
|
|
(3,460)
|
|
|
Non-GAAP
Basis
|
$
|
741,477
|
|
$
|
27,231
|
|
$
|
733,316
|
|
$
|
546,221
|
|
89,179
|
|
$
|
6.12
|
|
% of Net
Sales
|
7.74
|
%
|
0.28
|
%
|
7.65
|
%
|
5.70
|
%
|
|
|
|
|
(1)
|
Amortization of the
non-cash debt discount on the Company's convertible senior notes
and diluted shares that will be offset at settlement by shares
delivered from the convertible note hedge purchased by the Company.
This amount includes $1.1 million of amortization recognized in the
fiscal quarter ended May 2, 2020.
|
(2)
|
The provision for
income taxes for non-GAAP adjustments was calculated at 26%, which
approximated the Company's blended tax rate.
|
|
52 Weeks Ended
February 1, 2020
|
|
Gross
profit
|
Selling,
general and
administrative
expenses
|
Income
from
operations
|
Gain
on
sale of
subsidiaries
|
Income
before
income
taxes
|
Net
income
(5)
|
Diluted
shares
outstanding
during
period
|
Earnings
per
diluted
share
|
GAAP Basis
|
$
|
2,554,558
|
|
$
|
2,173,677
|
|
$
|
375,613
|
|
$
|
(33,779)
|
|
$
|
407,704
|
|
$
|
297,462
|
|
89,066
|
|
$
|
3.34
|
|
% of Net
Sales
|
29.19
|
%
|
24.84
|
%
|
4.29
|
%
|
(0.39)
|
%
|
4.66
|
%
|
3.40
|
%
|
|
|
Hunt restructuring
charges (1)
|
13,135
|
|
(44,588)
|
|
57,723
|
|
—
|
|
57,723
|
|
50,072
|
|
|
|
Gain on sale of
subsidiaries (2)
|
—
|
|
—
|
|
—
|
|
33,779
|
|
(33,779)
|
|
(24,996)
|
|
|
|
Other asset
impairments (3)
|
—
|
|
(15,253)
|
|
15,253
|
|
—
|
|
15,253
|
|
11,287
|
|
|
|
Litigation
contingency settlement (4)
|
—
|
|
6,411
|
|
(6,411)
|
|
—
|
|
(6,411)
|
|
(4,744)
|
|
|
|
Non-GAAP
Basis
|
$
|
2,567,693
|
|
$
|
2,120,247
|
|
$
|
442,178
|
|
$
|
—
|
|
$
|
440,490
|
|
$
|
329,081
|
|
89,066
|
|
$
|
3.69
|
|
% of Net
Sales
|
29.34
|
%
|
24.23
|
%
|
5.05
|
%
|
—
|
%
|
5.03
|
%
|
3.76
|
%
|
|
|
|
|
(1)
|
Hunt restructuring
charges of $57.7 million included $35.7 million of non-cash
impairments of a trademark and store assets, a $13.1 million
write-down of inventory and an $8.9 million charge related to our
exit from eight Field & Stream stores in the third quarter,
which were subleased to Sportsman's Warehouse.
|
(2)
|
Gain on sale of Blue
Sombrero and Affinity Sports subsidiaries.
|
(3)
|
Non-cash impairment
charges to reduce the carrying value of a corporate aircraft to its
fair market value, which was subsequently sold.
|
(4)
|
Favorable settlement
of a previously accrued litigation contingency.
|
(5)
|
Except for the
impairment of the trademark, the provision for income taxes for
non-GAAP adjustments was calculated at 26%, which approximated the
Company's blended tax rate. The trademark impairment charge of
$28.3 million was not deductible for tax purposes.
|
Reconciliation of
Gross Capital Expenditures to Net Capital
Expenditures
|
(in
thousands)
|
|
The following table
represents a reconciliation of the Company's gross capital
expenditures to its capital expenditures, net of tenant
allowances.
|
|
|
|
13 Weeks
Ended
|
|
|
May 1,
2021
|
|
May 2,
2020
|
Gross capital
expenditures
|
|
$
|
(71,097)
|
|
|
$
|
(59,591)
|
|
Construction
allowances provided by landlords
|
|
13,902
|
|
|
8,638
|
|
Net capital
expenditures
|
|
$
|
(57,195)
|
|
|
$
|
(50,953)
|
|
Reconciliation of
Non-GAAP Consolidated Net Income and Earnings Per Diluted Share
Guidance
|
(in millions, except
per share amounts)
|
|
|
52 Weeks Ended
January 29, 2022
|
|
Low
End
|
|
High
End
|
|
|
|
|
|
|
|
|
|
|
|
Income
before
income
taxes
|
Net
income
(2)
|
Weighted
average
diluted
shares
|
Earnings
per
diluted
share
|
|
Income
before
income
taxes
|
Net
income
(2)
|
Weighted
average
diluted
shares
|
Earnings
per
diluted
share
|
GAAP Basis
|
$
|
990
|
|
$
|
754
|
|
107
|
|
$
|
7.05
|
|
|
$
|
1,080
|
|
$
|
822
|
|
107
|
|
$
|
7.68
|
|
Convertible senior
notes (1)
|
30
|
|
22
|
|
(10)
|
|
|
|
30
|
|
22
|
|
(10)
|
|
|
Non-GAAP
Basis
|
$
|
1,020
|
|
$
|
776
|
|
97
|
|
$
|
8.00
|
|
|
$
|
1,110
|
|
$
|
844
|
|
97
|
|
$
|
8.70
|
|
% of Net
Sales
|
9.7
|
%
|
7.4
|
%
|
|
|
|
10.3
|
%
|
7.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Amortization of the
non-cash debt discount on the Company's convertible senior notes
and diluted shares that will be offset at settlement by shares
delivered from the convertible note hedge purchased by the
Company.
|
(2)
|
The provision for
income taxes for non-GAAP adjustments was calculated at 26%, which
approximates the Company's blended tax rate.
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/dicks-sporting-goods-reports-record-quarterly-earnings-in-first-quarter-2021-delivers-115-increase-in-same-store-sales-compared-to-the-first-quarter-of-2020-and-raises-full-year-guidance-301299402.html
SOURCE DICK'S Sporting Goods, Inc.