– Delivers 2.8% Fourth Quarter Comparable
Store Sales Growth –
– Guides to Growth in Sales
and Profitability in 2024 –
- Delivered 2.4% full year 2023 comparable store sales growth,
driven by a 1.6% increase in transactions
- Delivered full year 2023 earnings per diluted share of
$12.18 and non-GAAP earnings per
diluted share of $12.91, which both
included $0.19 from the
53rd week
- Provides 2024 outlook and expects full year comparable store
sales growth to be in the range of 1.0% to 2.0% and earnings per
diluted share to be in the range of $12.85 to 13.25
- Increased annualized dividend to $4.40 per share, an increase of 10%; Declared
quarterly dividend of $1.10 per
share
|
"We are very pleased
with our results and accomplishments in 2023 and are excited to
continue to redefine the future of retail. We are proud of our
progress in repositioning our portfolio through House of Sport, our
next generation 50,000 square foot DICK'S store and Golf Galaxy
Performance Center. Our growth opportunities are significant, and
we continue to prioritize investments in our future to fuel
long-term omnichannel growth. I'd like to thank all our teammates
for their hard work and unwavering dedication to our
business."
|
|
Ed Stack, Executive
Chairman
|
|
"With our
industry-leading assortment and strong execution, we capped off the
year with an incredibly strong fourth quarter and holiday season.
Even excluding the extra week, this was the largest sales quarter
in the history of the Company, and during the fourth quarter, we
drove significant gross margin and EBT margin expansion. Our full
year comps increased 2.4%, driven by growth in transactions, and we
continued to gain market share."
|
|
|
"We are guiding to
another strong year in 2024. We plan to grow both our sales and
earnings through positive comps, higher merchandise margin and
productivity gains. With the continued success of our new store
formats and our omnichannel experience, we will accelerate our
investment in our growth strategies to drive our business forward
and continue gaining market share in a fragmented
$140-billion-dollar industry."
|
|
Lauren Hobart, President and Chief Executive
Officer
|
PITTSBURGH, March 14,
2024 /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
fourth quarter and full year ended February
3, 2024.
|
Fourth Quarter
Operating Results
(dollars in
millions, except per share data)
|
14 Weeks
Ended
February 3,
2024 (1)
|
13 Weeks
Ended
January 28,
2023
|
Change
(2)
|
|
Net sales
|
$
3,876
|
$
3,597
|
$ 279
|
7.8 %
|
|
Comparable store sales
(13-week basis)
|
2.8 %
|
5.3 %
|
|
|
Income before income
taxes (% of net sales) (3)
|
10.2 %
|
8.9 %
|
129 bps
|
|
Non-GAAP income before
income taxes (% of net sales) (3) (4)
|
11.0 %
|
9.7 %
|
129 bps
|
|
Net income
|
$
296
|
$
236
|
$
61
|
26 %
|
|
Non-GAAP net income
(4)
|
$
320
|
$
258
|
$
62
|
24 %
|
|
Earnings per diluted
share
|
$
3.57
|
$
2.60
|
$
0.97
|
37 %
|
|
Non-GAAP earnings per
diluted share (4)
|
$
3.85
|
$
2.93
|
$
0.92
|
31 %
|
|
Year-to-Date Operating
Results
(dollars in
millions, except per share data)
|
53 Weeks
Ended
February 3,
2024 (1)
|
52
Weeks Ended
January 28,
2023
|
Change
(2)
|
|
Net sales
|
$
12,984
|
$
12,368
|
$ 616
|
5.0 %
|
|
Comparable store sales
(52-week basis)
|
2.4 %
|
(0.5) %
|
|
|
Income before income
taxes (% of net sales) (3)
|
10.2 %
|
11.2 %
|
(104) bps
|
|
Non-GAAP income before
income taxes (% of net sales) (3) (4)
|
10.8 %
|
11.4 %
|
(63) bps
|
|
Net income
|
$
1,047
|
$
1,043
|
$
3
|
— %
|
|
Non-GAAP net income
(4)
|
$
1,109
|
$
1,065
|
$
44
|
4 %
|
|
Earnings per diluted
share
|
$
12.18
|
$
10.78
|
$ 1.40
|
13 %
|
|
Non-GAAP earnings per
diluted share (4)
|
$
12.91
|
$
12.04
|
$
0.87
|
7 %
|
|
Balance
Sheet
(in
millions)
|
As of
February 3,
2024
|
As of
January
28, 2023
|
$
Change
(2)
|
%
Change
(2)
|
|
Cash and cash
equivalents
|
$
1,801
|
$
1,924
|
$
(123)
|
(6) %
|
|
Inventories,
net
|
$
2,849
|
$
2,831
|
$
18
|
1 %
|
|
Total debt
(5)
|
$
1,483
|
$
1,541
|
$
(57)
|
(4) %
|
|
Capital
Allocation
(in
millions)
|
53 Weeks
Ended
February 3,
2024
|
52 Weeks
Ended
January 28,
2023
|
$
Change
(2)
|
%
Change
(2)
|
|
Share repurchases
(6)
|
$
649
|
$
427
|
$
222
|
52 %
|
|
Dividends paid
(7)
|
$
351
|
$
163
|
$
188
|
115 %
|
|
Gross capital
expenditures
|
$
587
|
$
364
|
$
223
|
61 %
|
|
Net capital
expenditures (4)
|
$
520
|
$
328
|
$
192
|
59 %
|
|
Principal paid in
connection with exchange of
Convertible Senior Notes
(8)
|
$
—
|
$
516
|
$
(516)
|
|
|
|
|
|
|
|
Notes
|
|
1.
|
Includes net sales of
$170.2 million and approximately $0.19 earnings per diluted share
from the extra week of operations in our fiscal year.
|
|
2.
|
Column may not
recalculate due to rounding.
|
|
3.
|
Also referred to by
management as earnings before income taxes margin ("EBT
margin").
|
|
4.
|
For additional
information, see GAAP to non-GAAP reconciliations included in
tables later in the release under the heading "GAAP to Non-GAAP
Reconciliations."
|
|
5.
|
Fiscal 2022 included
debt with a carrying value of $58 million related to the Company's
Convertible Senior Notes, which were fully retired as of April 18,
2023. The Company had no outstanding borrowings under its revolving
credit facility in 2023 and 2022.
|
|
6.
|
During fiscal 2023 the
Company repurchased 5.4 million shares of its common stock at an
average price of $119.24 per share, for a total cost of $648.6
million under its share repurchase program. The Company has $780
million remaining under its authorization as of February 3,
2024.
|
|
7.
|
The Company declared
and paid quarterly dividends of $1.00 per share in fiscal 2023 and
$0.4875 per share in fiscal 2022.
|
|
8.
|
During fiscal 2022 the
Company exchanged $516 million aggregate principal amount of
Convertible Senior Notes and unwound the corresponding portion of
the convertible bond hedge and warrants for $516 million of cash
and 9.8 million shares of our common stock. During the first
quarter of fiscal 2023, the Company retired the remaining $59.1
million of aggregate principal amount outstanding of the
Convertible Senior Notes and related bond hedge and warrant
transactions for 1.7 million shares of the Company's common stock.
Refer to the Company's Form 8-K filed with the SEC on April 24,
2023 for additional information.
|
Quarterly Dividend
On March 13, 2024, the Company's
Board of Directors authorized and declared a quarterly dividend in
the amount of $1.10 per share on the
Company's Common Stock and Class B Common Stock. The dividend is
payable in cash on April 12, 2024 to
stockholders of record at the close of business on March 29, 2024. This dividend represents an
increase of 10% over the Company's previous quarterly per share
amount and is equivalent to an annualized dividend of $4.40 per share.
Business Optimization
As previously announced, the Company conducted a business
optimization during the current year to better align its talent,
organizational design and spending in support of its most critical
strategies while also streamlining its overall cost structure. The
Company completed its business optimization during the fourth
quarter of 2023 and incurred pre-tax charges of $84.8 million related to the elimination of
certain positions primarily at its customer support center as well
as the optimization of its outdoor specialty business, which
included the integration of its Moosejaw and Public Lands
operations, decisions about their go-forward inventory assortment
and a comprehensive review of their store portfolios.
Full Year 2024 Outlook (52 week year)
The Company's Full Year Outlook for 2024 is presented below:
|
Metric
|
2024 Outlook
|
|
Earnings per diluted
share
|
●
$12.85 to 13.25
○
Based on approximately 83 million diluted
shares outstanding
○
Based on an effective tax rate of
approximately 24%
|
|
Net sales
|
●
$13.0 billion to 13.13 billion
|
|
Comparable store
sales
|
●
Positive 1.0% to positive 2.0%
|
|
Capital
expenditures
|
●
Approximately $900 million on a gross
basis
●
Approximately $800 million on a net
basis
|
|
Store Count and Square Footage
The following tables summarize store activity for the periods
indicated:
|
53 Weeks Ended February
3, 2024
|
52 Weeks Ended January
28, 2023
|
|
DICK'S
Sporting Goods
|
Specialty
Concept Stores
(1)
|
Total
(2)
|
DICK'S
Sporting Goods
|
Specialty
Concept Stores
(1)
|
Total
(2)
|
|
Beginning
stores
|
728
|
125
|
853
|
730
|
131
|
861
|
|
Q1 New
stores
|
—
|
—
|
—
|
—
|
1
|
1
|
|
Q2 New
stores
|
—
|
1
|
1
|
1
|
1
|
2
|
|
Q3 New
stores
|
1
|
9
|
10
|
3
|
6
|
9
|
|
Q4 New
stores
|
—
|
—
|
—
|
—
|
1
|
1
|
|
Stores acquired
(3)
|
—
|
12
|
12
|
—
|
—
|
—
|
|
Closed
stores
|
5
|
16
|
21
|
6
|
15
|
21
|
|
Ending
stores
|
724
(4)
|
131
|
855
|
728
|
125
|
853
|
|
Relocated
stores
|
18
|
2
|
20
|
3
|
1
|
4
|
|
Square
Footage:
(in
millions)
|
DICK'S
Sporting Goods
(1)
|
Specialty
Concept Stores (2)
|
Total (3)
(5)
|
|
Q1 2022
|
38.7
|
3.6
|
42.3
|
|
Q2 2022
|
38.8
|
3.6
|
42.4
|
|
Q3 2022
|
38.8
|
3.9
|
42.7
|
|
Q4 2022
|
39.2
|
3.4
|
42.6
|
|
Q1 2023
|
39.2
|
3.4
|
42.6
|
|
Q2 2023
|
39.0
|
3.4
|
42.4
|
|
Q3 2023
|
39.2
|
3.6
|
42.7
|
|
Q4 2023
|
39.3
|
3.4
|
42.7
|
|
|
|
(1)
|
Includes our Golf
Galaxy, Public Lands, Going Going Gone! and other specialty concept
stores. As of February 3, 2024, we operated 104 Golf Galaxy
stores, 7 Public Lands stores, 17 Going Going Gone! stores and
other specialty concept stores. As of January 28, 2023, we operated
98 Golf Galaxy stores, 7 Public Lands stores, 15 Going Going Gone!
stores and 5 Field & Stream stores. In some markets, we operate
DICK'S Sporting Goods stores adjacent to our specialty concept
stores on the same property with a pass-through for our athletes.
We refer to this format as a "combo store" and include combo store
openings within both the DICK'S Sporting Goods and specialty
concept store reconciliations, as applicable. As of
February 3, 2024, the Company operated 18 combo
stores.
|
|
(2)
|
Excludes Warehouse Sale
store locations that are temporary in nature, of which the Company
operated 36 and 43 as of February 3, 2024 and
January 28, 2023, respectively.
|
|
(3)
|
Represents Moosejaw
store locations acquired by the Company during the first quarter of
fiscal 2023, which average approximately 4,000 square feet per
store. The Company closed 10 of the previously acquired
Moosejaw store locations during fiscal 2023.
|
|
(4)
|
As of February 3,
2024, includes 12 DICK'S House of Sport stores, which were either
converted or relocated from prior store locations.
|
|
(5)
|
Column may not
recalculate due to rounding.
|
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
non-GAAP EBT margin, consolidated non-GAAP net income, non-GAAP
earnings per diluted share, non-GAAP diluted shares outstanding,
net capital expenditures and fiscal 2023 net sales adjusted for the
53rd week, which management believes provides investors
with useful supplemental information to evaluate the Company's
ongoing operations and to compare with past and future periods.
Furthermore, management believes that adjustments related to its
deferred compensation plans enables investors to better understand
its selling, general and administrative expense trends excluding
non-cash changes in our deferred compensation plan investment fair
values from market fluctuations that are offset within other
income. Additionally, management believes that adjustments related
to its Convertible Senior Notes and convertible bond hedge provided
a more complete view of the economics of the instruments upon
future conversion. Management also uses these 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.
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. Forward-looking statements can be identified as
those that may predict, forecast, indicate or imply future results
or performance and by forward-looking words such as "believe",
"anticipate", "expect", "estimate", "predict", "intend", "plan",
"project", "goal", "will", "will be", "will continue", "will
result", "could", "may", "might" or any variations of such words or
other words with similar meanings. These 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 2024 outlook for earnings,
sales, and capital expenditures; our plan to grow both our sales
and earnings in 2024, through positive comps, and higher gross
margin; the repositioning of our real estate portfolio; the impact
of our business optimization efforts completed in 2023; expected
share repurchases; and the expected increased dividend on an
annualized basis; and the health and positioning of our
inventory.
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: macroeconomic conditions,
inflation, elevated interest rates and recessionary pressures,
adverse changes in consumer disposable income, reinstatement of
student loan payments, consumer confidence and perception of
economic conditions, including the instability in the banking
sector, geopolitical conflicts (including the conflicts in
Ukraine and the Middle East) and the threat or outbreak of
further conflicts, terrorism or public unrest and changes in
consumer discretionary spending; changes in the competitive market
and competition amongst retailers and increasing direct competition
from vendors; fluctuations in product costs and availability;
international risks and costs, including foreign trade issues,
currency exchange rate fluctuations, shipment delays and supply
chain disruptions and political instability; changes in consumer
demand or shopping patterns and the ability to identify new trends
and have the right trending products in stores and online; our
investments in vertical brand offerings and new specialty concept
stores; our investments in GameChanger, our sports technology
platform; reputational harm or negative reactions from customers,
vendors and stockholders regarding Company policy changes or
advocacy efforts related to social and political issues;
investments in strategic plans and initiatives not producing the
anticipated benefits within the expected time-frame or at all; an
ability to execute our real estate strategy and risks associated
with the brick and mortar retail store model; risks related to our
distribution and fulfillment network; unauthorized disclosure of
sensitive or confidential customer information or disruptions or
other problems with our information systems, including our
eCommerce platform; our ability to hire and retain quality
teammates, including store managers and sales associates,
increasing labor costs or the loss of key personnel;
weather-related risks and seasonality of certain categories of the
Company's operations; our ability to protect against inventory
shrink; the ability of suppliers, distributors and manufacturers to
provide us with sufficient quantities of quality product in a
timely fashion; changes in existing tax, labor, foreign trade and
other laws and regulations, including those imposing new taxes,
surcharges, and tariffs, and compliance with such laws and
regulations; product safety and labeling concerns; various types of
litigation and other claims and sufficient insurance with respect
thereto; our ability to protect our intellectual property rights or
claims of infringement by third parties; the performance of
professional sports teams and other factors relating to
professional sports leagues and key athletes; and the availability
of adequate capital; the issuance of quarterly cash dividends and
our repurchase activity, if any; and obligations and other
provisions related to our indebtedness.
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 23, 2023 and
subsequent quarterly reports on Form 10-Q filed during fiscal 2023.
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.
Conference Call Info
The Company will host a conference call today at 8:00 a.m. Eastern Time to discuss the fourth
quarter and full year 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.
About DICK'S Sporting Goods
DICK'S Sporting Goods (NYSE: DKS) creates confidence and
excitement by inspiring, supporting and personally equipping all
athletes to achieve their dreams. Founded in 1948 and headquartered
in Pittsburgh, the leading
omnichannel retailer serves athletes and outdoor enthusiasts in
more than 850 DICK'S Sporting Goods, Golf Galaxy, Public Lands,
Moosejaw, Going Going Gone! and Warehouse Sale stores, online, and
through the DICK'S mobile app. DICK'S also owns and operates DICK'S
House of Sport and Golf Galaxy Performance Center, as well as
GameChanger, a youth sports mobile app for scheduling,
communications, live scorekeeping and video streaming.
Driven by its belief that sports have the power to change lives,
DICK'S has been a longtime champion for youth sports and, together
with its Foundation, has donated millions of dollars to support
under-resourced teams and athletes through the Sports Matter
program and other community-based initiatives. Additional
information about DICK'S business, corporate giving, sustainability
efforts and employment opportunities can be found on dicks.com,
investors.dicks.com, sportsmatter.org, and dickssportinggoods.jobs,
as well as Instagram, TikTok, Facebook, and X.
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 INCOME - UNAUDITED
(In thousands,
except per share data)
|
|
|
|
14 Weeks
Ended
|
|
13 Weeks
Ended
|
|
|
|
February 3,
2024
|
|
% of
Sales
|
|
January 28,
2023
|
|
% of
Sales (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
3,876,171
|
|
100.00 %
|
|
$
3,596,713
|
|
100.00 %
|
|
|
Cost of goods sold,
including occupancy and distribution costs
|
|
2,541,992
|
|
65.58
|
|
2,430,674
|
|
67.58
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
1,334,179
|
|
34.42
|
|
1,166,039
|
|
32.42
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
958,577
|
|
24.73
|
|
853,054
|
|
23.72
|
|
|
Pre-opening
expenses
|
|
3,564
|
|
0.09
|
|
2,129
|
|
0.06
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
|
372,038
|
|
9.60
|
|
310,856
|
|
8.64
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
14,215
|
|
0.37
|
|
17,953
|
|
0.50
|
|
|
Other income
|
|
(37,520)
|
|
(0.97)
|
|
(27,508)
|
|
(0.76)
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES
|
|
395,343
|
|
10.20
|
|
320,411
|
|
8.91
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
98,910
|
|
2.55
|
|
84,790
|
|
2.36
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
296,433
|
|
7.65 %
|
|
$
235,621
|
|
6.55 %
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
3.69
|
|
|
|
$
2.91
|
|
|
|
|
Diluted
|
|
$
3.57
|
|
|
|
$
2.60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NUMERATOR USED TO
COMPUTE EARNINGS PER COMMON SHARE:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
296,433
|
|
|
|
$
235,621
|
|
|
|
|
Diluted
|
|
$
296,433
|
|
|
|
$
238,007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
80,370
|
|
|
|
81,107
|
|
|
|
|
Diluted
|
|
83,111
|
|
|
|
91,395
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Column does not add due to rounding
|
|
DICK'S SPORTING
GOODS, INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF INCOME - UNAUDITED
(In thousands,
except per share data)
|
|
|
|
53 Weeks
Ended
|
|
52 Weeks
Ended
|
|
|
|
February 3,
2024
|
|
% of
Sales
|
|
January 28,
2023
|
|
% of
Sales (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$ 12,984,399
|
|
100.00 %
|
|
$ 12,368,198
|
|
100.00 %
|
|
|
Cost of goods sold,
including occupancy and distribution costs
|
|
8,450,664
|
|
65.08
|
|
8,083,640
|
|
65.36
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
4,533,735
|
|
34.92
|
|
4,284,558
|
|
34.64
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
3,204,108
|
|
24.68
|
|
2,805,462
|
|
22.68
|
|
|
Pre-opening
expenses
|
|
47,262
|
|
0.36
|
|
16,077
|
|
0.13
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
|
1,282,365
|
|
9.88
|
|
1,463,019
|
|
11.83
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
58,023
|
|
0.45
|
|
95,220
|
|
0.77
|
|
|
Other income
|
|
(93,809)
|
|
(0.72)
|
|
(15,949)
|
|
(0.13)
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES
|
|
1,318,151
|
|
10.15
|
|
1,383,748
|
|
11.19
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
271,632
|
|
2.09
|
|
340,610
|
|
2.75
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
1,046,519
|
|
8.06 %
|
|
$
1,043,138
|
|
8.43 %
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
12.72
|
|
|
|
$
13.43
|
|
|
|
|
Diluted
|
|
$
12.18
|
|
|
|
$
10.78
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NUMERATOR USED TO
COMPUTE EARNINGS PER COMMON SHARE:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
1,046,519
|
|
|
|
$
1,043,138
|
|
|
|
|
Diluted
|
|
$
1,046,856
|
|
|
|
$
1,070,198
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
82,302
|
|
|
|
77,672
|
|
|
|
|
Diluted
|
|
85,925
|
|
|
|
99,274
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Column does not add due to rounding
|
|
DICK'S SPORTING
GOODS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS - UNAUDITED
(In
thousands)
|
|
|
|
February 3,
2024
|
|
January 28,
2023
|
|
ASSETS
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
1,801,220
|
|
$
1,924,386
|
|
Accounts receivable,
net
|
|
114,877
|
|
71,286
|
|
Income taxes
receivable
|
|
4,108
|
|
8,187
|
|
Inventories,
net
|
|
2,848,797
|
|
2,830,917
|
|
Prepaid expenses and
other current assets
|
|
121,047
|
|
128,410
|
|
Total current
assets
|
|
4,890,049
|
|
4,963,186
|
|
|
|
|
|
|
Property and
equipment, net
|
|
1,638,161
|
|
1,312,988
|
|
Operating lease
assets
|
|
2,257,482
|
|
2,138,366
|
|
Intangible assets,
net
|
|
56,663
|
|
60,364
|
|
Goodwill
|
|
245,857
|
|
245,857
|
|
Deferred income
taxes
|
|
37,846
|
|
41,189
|
|
Other
assets
|
|
185,694
|
|
230,246
|
|
TOTAL
ASSETS
|
|
$
9,311,752
|
|
$
8,992,196
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
Accounts
payable
|
|
$
1,288,728
|
|
$
1,206,066
|
|
Accrued
expenses
|
|
551,369
|
|
508,573
|
|
Operating lease
liabilities
|
|
492,856
|
|
546,755
|
|
Income taxes
payable
|
|
54,508
|
|
29,624
|
|
Deferred revenue and
other liabilities
|
|
364,933
|
|
350,428
|
|
Total current
liabilities
|
|
2,752,394
|
|
2,641,446
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
|
Revolving credit
borrowings
|
|
—
|
|
—
|
|
Senior
notes
|
|
1,483,260
|
|
1,482,336
|
|
Convertible senior
notes
|
|
—
|
|
58,271
|
|
Long-term operating
lease liabilities
|
|
2,287,714
|
|
2,117,773
|
|
Other long-term
liabilities
|
|
171,103
|
|
167,747
|
|
Total long-term
liabilities
|
|
3,942,077
|
|
3,826,127
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY:
|
|
|
|
|
|
Common
stock
|
|
568
|
|
585
|
|
Class B common
stock
|
|
236
|
|
236
|
|
Additional paid-in
capital
|
|
1,448,855
|
|
1,416,847
|
|
Retained
earnings
|
|
5,588,914
|
|
4,878,404
|
|
Accumulated other
comprehensive loss
|
|
(329)
|
|
(252)
|
|
Treasury stock, at
cost
|
|
(4,420,963)
|
|
(3,771,197)
|
|
Total stockholders'
equity
|
|
2,617,281
|
|
2,524,623
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
$
9,311,752
|
|
$
8,992,196
|
|
|
|
|
|
|
DICK'S SPORTING
GOODS, INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS - UNAUDITED
(In
thousands)
|
|
|
|
Fiscal Year
Ended
|
|
|
February 3,
2024
|
|
January 28,
2023
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
Net income
|
|
$
1,046,519
|
|
$
1,043,138
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
|
393,933
|
|
365,475
|
|
Amortization of
deferred financing fees and debt discount
|
|
2,364
|
|
4,250
|
|
Deferred income
taxes
|
|
3,343
|
|
23,100
|
|
Stock-based
compensation
|
|
57,285
|
|
50,603
|
|
Other, net
|
|
9,332
|
|
15,306
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
Accounts
receivable
|
|
(4,236)
|
|
(13,558)
|
|
Inventories
|
|
18,823
|
|
(533,308)
|
|
Prepaid expenses and
other assets
|
|
(18,220)
|
|
(9,690)
|
|
Accounts
payable
|
|
20,365
|
|
13,983
|
|
Accrued
expenses
|
|
(2,462)
|
|
(74,205)
|
|
Income taxes payable /
receivable
|
|
29,167
|
|
12,256
|
|
Construction
allowances provided by landlords
|
|
67,061
|
|
36,100
|
|
Deferred revenue and
other liabilities
|
|
25,190
|
|
22,689
|
|
Operating lease assets
and liabilities
|
|
(121,129)
|
|
(34,258)
|
|
Net cash provided by
operating activities
|
|
1,527,335
|
|
921,881
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
Capital
expenditures
|
|
(587,426)
|
|
(364,075)
|
|
Proceeds from sale of
other assets
|
|
27,500
|
|
14,261
|
|
Other investing
activities
|
|
(54,750)
|
|
(43,080)
|
|
Net cash used in
investing activities
|
|
(614,676)
|
|
(392,894)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
Principal paid in
connection with exchange of convertible senior notes
|
|
(137)
|
|
(515,865)
|
|
Payments on finance
lease obligations
|
|
(823)
|
|
(740)
|
|
Proceeds from exercise
of stock options
|
|
15,205
|
|
23,681
|
|
Minimum tax
withholding requirements
|
|
(98,917)
|
|
(43,936)
|
|
Cash paid for treasury
stock
|
|
(648,554)
|
|
(458,456)
|
|
Cash dividends paid to
stockholders
|
|
(351,201)
|
|
(163,081)
|
|
Increase (decrease) in
bank overdraft
|
|
48,679
|
|
(89,239)
|
|
Net cash used in
financing activities
|
|
(1,035,748)
|
|
(1,247,636)
|
|
EFFECT OF EXCHANGE
RATE CHANGES ON CASH AND CASH EQUIVALENTS
|
|
(77)
|
|
(170)
|
|
NET DECREASE IN CASH
AND CASH EQUIVALENTS
|
|
(123,166)
|
|
(718,819)
|
|
CASH AND CASH
EQUIVALENTS, BEGINNING OF PERIOD
|
|
1,924,386
|
|
2,643,205
|
|
CASH AND CASH
EQUIVALENTS, END OF PERIOD
|
|
$
1,801,220
|
|
$
1,924,386
|
|
DICK'S SPORTING
GOODS, INC.
|
|
GAAP to NON-GAAP
RECONCILIATIONS - UNAUDITED
|
|
|
Non-GAAP Net Income
and Earnings Per Share Reconciliations
|
|
(dollars in thousands,
except per share amounts)
|
|
|
14 Weeks Ended
February 3, 2024
|
|
|
|
|
|
|
|
|
Gross
profit
|
Selling, general
and
administrative
expenses
|
Other
income
|
Income
before
income
taxes
|
Net
income (3)
|
Earnings
per diluted
share
|
|
GAAP Basis
|
$ 1,334,179
|
$
958,577
|
$
(37,520)
|
$
395,343
|
$
296,433
|
$
3.57
|
|
% of Net
Sales
|
34.42 %
|
24.73 %
|
(0.97) %
|
10.20 %
|
7.65 %
|
|
|
Business optimization
charges (1)
|
5,661
|
(26,654)
|
—
|
32,315
|
23,913
|
|
|
Deferred compensation
plan adjustments (2)
|
—
|
(16,097)
|
16,097
|
—
|
—
|
|
|
Non-GAAP
Basis
|
$
1,339,840
|
$
915,826
|
$
(21,423)
|
$
427,658
|
$
320,346
|
$
3.85
|
|
% of Net
Sales
|
34.57 %
|
23.63 %
|
(0.55) %
|
11.03 %
|
8.26 %
|
|
|
|
|
(1)
|
Includes $23.2 million
of non-cash impairments of store assets, a $5.7 million write-down
of inventory and $3.4 million of severance-related
costs.
|
|
(2)
|
Includes non-cash
changes in fair value of employee deferred compensation plan
investments held in rabbi trusts.
|
|
(3)
|
The provision for
income taxes for non-GAAP adjustments was calculated at 26% which
approximates the Company's blended tax rate.
|
|
53 Weeks Ended
February 3, 2024
|
|
|
|
|
|
|
|
|
Gross
profit
|
Selling, general
and
administrative
expenses
|
Other
income
|
Income
before
income
taxes
|
Net
income (3)
|
Earnings
per diluted
share
|
|
GAAP Basis
|
$
4,533,735
|
$
3,204,108
|
$
(93,809)
|
$ 1,318,151
|
$
1,046,519
|
$
12.18
|
|
% of Net
Sales
|
34.92 %
|
24.68 %
|
(0.72) %
|
10.15 %
|
8.06 %
|
|
|
Business optimization
charges (1)
|
11,984
|
(72,829)
|
—
|
84,813
|
62,762
|
|
|
Deferred compensation
plan adjustments (2)
|
—
|
(13,960)
|
13,960
|
—
|
—
|
|
|
Non-GAAP
Basis
|
$
4,545,719
|
$
3,117,319
|
$
(79,849)
|
$
1,402,964
|
$
1,109,281
|
$
12.91
|
|
% of Net
Sales
|
35.01 %
|
24.01 %
|
(0.61) %
|
10.80 %
|
8.54 %
|
|
|
|
|
(1)
|
Includes $46.1 million
of non-cash impairments of store and intangible assets, $26.7
million of severance-related costs and a $12.0 million write-down
of inventory.
|
|
(2)
|
Includes non-cash
changes in fair value of employee deferred compensation plan
investments held in rabbi trusts.
|
|
(3)
|
The provision for
income taxes for non-GAAP adjustments was calculated at 26% which
approximates the Company's blended tax rate.
|
|
13 Weeks Ended
January 28, 2023
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
Selling, general
and
administrative
expenses
|
Other
income
|
Income
before
income
taxes
|
Net
income
(4)
|
After tax
interest
from
Convertible
Senior
Notes (4)
|
Numerator
used to
compute
earnings
per diluted
share
|
Weighted
average
diluted
shares
|
Earnings
per
diluted
share
|
|
GAAP Basis
|
$
1,166,039
|
$
853,054
|
$ (27,508)
|
$
320,411
|
$
235,621
|
$
2,386
|
$ 238,007
|
91,395
|
$ 2.60
|
|
% of Net
Sales
|
32.42 %
|
23.72 %
|
(0.76) %
|
8.91 %
|
6.55 %
|
0.07 %
|
6.62 %
|
|
|
|
Convertible Senior
Notes (1)
|
—
|
—
|
—
|
—
|
—
|
(2,386)
|
(2,386)
|
(3,381)
|
|
|
Field & Stream exit
charges (2)
|
740
|
(29,340)
|
—
|
30,080
|
22,259
|
—
|
22,259
|
—
|
|
|
Deferred compensation
plan adjustments (3)
|
—
|
(10,319)
|
10,319
|
—
|
—
|
—
|
—
|
—
|
|
|
Non-GAAP
Basis
|
$
1,166,779
|
$
813,395
|
$ (17,189)
|
$ 350,491
|
$ 257,880
|
$
—
|
$ 257,880
|
88,014
|
$
2.93
|
|
% of Net
Sales
|
32.44 %
|
22.61 %
|
(0.48) %
|
9.74 %
|
7.17 %
|
— %
|
7.17 %
|
|
|
|
|
|
(1)
|
Adjustment eliminates
the impact of assumed share settlement of the Convertible Senior
Notes as required by "the if-converted method" under GAAP. The
Company retired its Convertible Senior Notes without dilutive
effect, due to cash payments for principal, shares received from
its convertible bond hedge and shares repurchased to offset share
settlement of remaining $59.1 million principal during the 13 weeks
ended April 29, 2023. Accordingly, the Company believes reflecting
the notes as debt more closely represents the economics of the
transaction.
|
|
(2)
|
Field & Stream exit
charges of $30.1 million included $28.5 million of non-cash
impairments of store assets, $0.8 million of severance and a $0.7
million inventory write-down related to our closure of 12 Field
& Stream stores in the fourth quarter of fiscal
2022.
|
|
(3)
|
Includes non-cash
changes in fair value of employee deferred compensation plan
investments held in rabbi trusts.
|
|
(4)
|
The provision for
income taxes for non-GAAP adjustments was calculated at 26% which
approximates the Company's blended tax rate.
|
|
52 Weeks Ended
January 28, 2023
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
Selling, general
and
administrative
expenses
|
Other
income
|
Income
before
income
taxes
|
Net
income
(4)
|
After tax
interest
from
Convertible
Senior
Notes (4)
|
Numerator
used to
compute
earnings
per diluted
share
|
Weighted
average
diluted
shares
|
Earnings
per
diluted
share
|
|
GAAP Basis
|
$
4,284,558
|
$
2,805,462
|
$
(15,949)
|
$
1,383,748
|
$ 1,043,138
|
$ 27,060
|
$
1,070,198
|
99,274
|
$ 10.78
|
|
% of Net
Sales
|
34.64 %
|
22.68 %
|
(0.13) %
|
11.19 %
|
8.43 %
|
0.22 %
|
8.65 %
|
|
|
|
Convertible Senior
Notes (1)
|
—
|
—
|
—
|
—
|
—
|
(27,060)
|
(27,060)
|
(10,792)
|
|
|
Field & Stream exit
charges (2)
|
740
|
(29,340)
|
—
|
30,080
|
22,259
|
—
|
22,259
|
—
|
|
|
Deferred compensation
plan adjustments (3)
|
—
|
14,609
|
(14,609)
|
—
|
—
|
—
|
—
|
—
|
|
|
Non-GAAP
Basis
|
$
4,285,298
|
$ 2,790,731
|
$
(30,558)
|
$
1,413,828
|
$
1,065,397
|
$
—
|
$
1,065,397
|
88,482
|
$ 12.04
|
|
% of Net
Sales
|
34.65 %
|
22.56 %
|
(0.25) %
|
11.43 %
|
8.61 %
|
— %
|
8.61 %
|
|
|
|
|
|
(1)
|
Adjustment eliminates
the impact of assumed share settlement of the Convertible Senior
Notes as required by "the if-converted method" under GAAP. The
Company retired its Convertible Senior Notes without dilutive
effect, due to cash payments for principal, shares received from
its convertible bond hedge and shares repurchased to offset share
settlement of remaining $59.1 million principal during the 13 weeks
ended April 29, 2023. Accordingly, the Company believes reflecting
the notes as debt more closely represents the economics of the
transaction.
|
|
(2)
|
Field & Stream exit
charges of $30.1 million included $28.5 million of non-cash
impairments of store assets, $0.8 million of severance and a $0.7
million inventory write-down related to our closure of 12 Field
& Stream stores in the fourth quarter of fiscal
2022.
|
|
(3)
|
Includes non-cash
changes in fair value of employee deferred compensation plan
investments held in rabbi trusts.
|
|
(4)
|
The provision for
income taxes for non-GAAP adjustments was calculated at 26% which
approximates the Company's blended tax rate.
|
|
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 construction
allowances.
|
|
|
|
Fiscal Year
Ended
|
|
|
February 3,
2024
|
|
January 28,
2023
|
|
Gross capital
expenditures
|
|
$
(587,426)
|
|
$
(364,075)
|
|
Construction allowances
provided by landlords
|
|
67,061
|
|
36,100
|
|
Net capital
expenditures
|
|
$
(520,365)
|
|
$
(327,975)
|
|
Fiscal 2023 Net
Sales Adjusted for the 53rd Week
|
|
(in
thousands)
|
|
|
Net sales adjusted for
the extra week during the 14 and 53 weeks ended February 3, 2024 is
presented below to illustrate the impact of the extra
week on reported net sales in comparison to reported results
for the 13 and 52 weeks ended January 28, 2023.
|
|
|
|
Period Ended
February 3, 2024
|
|
|
14
Weeks
|
|
53
Weeks
|
|
Net sales
|
|
$
3,876,171
|
|
$
12,984,399
|
|
Less: 53rd
week net sales
|
|
(170,223)
|
|
(170,223)
|
|
Adjusted net
sales
|
|
$
3,705,948
|
|
$
12,814,176
|
|
|
|
|
|
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SOURCE DICK'S Sporting Goods, Inc.