– Delivers 4.2% Comparable Sales Growth –
– Raises 2024 Comp Sales and EPS Outlook –
Delivered third quarter net sales of $3.06 billion and earnings per diluted share of $2.75 including the expected unfavorable impact from the calendar shift of approximately $105 million and $0.35 per diluted share, respectively
Delivered year-to-date comparable sales growth of 4.7%, EBT margin of 11.8% and earnings per diluted share of $10.43
Raises full year 2024 guidance for comparable sales growth to a range of 3.6% to 4.2%, up from 2.5% to 3.5% previously
Raises full year 2024 earnings per diluted share guidance to a range of $13.65 to 13.95, up from $13.55 to 13.90 previously
|
“Our strong third quarter results demonstrate the significant momentum we have in our business. We continue to make strategic investments such as our House of Sport and DICK’S Field House concepts, where we are redefining sports retail and creating strong engagement with our athletes, brand partners and communities, that will fuel our long-term growth. Sport continues to have a strong influence on culture, and culture on sport, and our House of Sport concept is uniquely positioned to meet the needs of athletes as they look for the best of performance as well as the lifestyle of sport.” |
|
Ed Stack, Executive Chairman |
|
“We are very proud of our Q3 results and our performance year-to-date. Our third quarter comp sales grew 4.2%, driven by a continued focus on our strategic pillars and great execution from our team. We had an excellent back-to-school season and continued to gain market share. As a result of our strong performance in the quarter and the continued confidence we have in our business, we are again raising our full year outlook. We believe our differentiated product, quality service and powerful omni-channel experience will resonate well with our athletes this holiday season.” |
|
Lauren Hobart, President and Chief Executive Officer |
PITTSBURGH, Nov. 26, 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 third quarter ended November 2, 2024.
DICK’S is ready for the holiday season! Today, the company announced its Q3 earnings in which comp sales grew 4.2%. DICK’S also raised its full-year outlook.
|
Third Quarter Operating Results (dollars in millions, except per share data) |
13 Weeks Ended |
Change (1) |
||||||
|
November 2, 2024 |
October 28, 2023 |
|||||||
|
Net sales (2) |
$ 3,057 |
$ 3,042 |
$ 15 |
0.5 % |
||||
|
Comparable sales (2) (3) |
4.2 % |
1.9 % |
||||||
|
Income before income taxes (% of net sales) (4) |
9.7 % |
8.8 % |
89 bps |
|||||
|
Non-GAAP income before income taxes (% of net sales) (4) (5) |
9.7 % |
10.6 % |
(84) bps |
|||||
|
Net income |
$ 228 |
$ 201 |
$ 27 |
13 % |
||||
|
Non-GAAP net income (5) |
$ 228 |
$ 240 |
$ (12) |
(5) % |
||||
|
Earnings per diluted share (2) |
$ 2.75 |
$ 2.39 |
$ 0.36 |
15 % |
||||
|
Non-GAAP earnings per diluted share (2) (5) |
$ 2.75 |
$ 2.85 |
$ (0.10) |
(4) % |
||||
|
Year-to-Date Operating Results (dollars in millions, except per share data) |
39 Weeks Ended |
Change (1) |
||||||
|
November 2, 2024 |
October 28, 2023 |
|||||||
|
Net sales (2) |
$ 9,549 |
$ 9,108 |
$ 441 |
4.8 % |
||||
|
Comparable sales (2) (3) |
4.7 % |
2.5 % |
||||||
|
Income before income taxes (% of net sales) (4) |
11.8 % |
10.1 % |
162 bps |
|||||
|
Non-GAAP income before income taxes (% of net sales) (4) (5) |
11.8 % |
10.7 % |
104 bps |
|||||
|
Effective tax rate |
22.9 % |
18.7 % |
414 bps |
|||||
|
Net income |
$ 865 |
$ 750 |
$ 115 |
15 % |
||||
|
Non-GAAP net income (5) |
$ 865 |
$ 789 |
$ 76 |
10 % |
||||
|
Earnings per diluted share (2) |
$ 10.43 |
$ 8.63 |
$ 1.80 |
21 % |
||||
|
Non-GAAP earnings per diluted share (2) (5) |
$ 10.43 |
$ 9.08 |
$ 1.35 |
15 % |
||||
|
Balance Sheet (in millions) |
As of November 2, |
As of October 28, |
$ Change (1) |
% Change (1) |
|
Cash and cash equivalents |
$ 1,459 |
$ 1,406 |
$ 52 |
4 % |
|
Inventories, net |
$ 3,726 |
$ 3,283 |
$ 443 |
13 % |
|
Total debt (6) |
$ 1,484 |
$ 1,483 |
$ 1 |
— % |
|
Capital Allocation (in millions) |
39 Weeks Ended |
$ Change (1) |
% Change (1) |
|
|
November 2, |
October 28, |
|||
|
Share repurchases (7) |
$ 170 |
$ 649 |
$ (478) |
(74) % |
|
Dividends paid (8) |
$ 273 |
$ 271 |
$ 3 |
1 % |
|
Gross capital expenditures |
$ 566 |
$ 410 |
$ 156 |
38 % |
|
Net capital expenditures (5) |
$ 511 |
$ 369 |
$ 142 |
39 % |
Notes
|
1. |
Column may not recalculate due to rounding. |
|
2. |
Due to the 53rd week in fiscal 2023, there is a one-week shift in the fiscal 2024 calendar compared to the prior year, which unfavorably impacted net sales comparisons for the third quarter by approximately $105 million, or approximately $0.35 per diluted share, and favorably impacted the year-to-date period by approximately $35 million, or approximately $0.10 per diluted share. Comparable sales for fiscal 2024 are calculated by shifting the prior year period by one week to compare similar calendar weeks. |
|
3. |
Beginning in fiscal 2024, we revised our method for calculating comparable sales to include GameChanger revenue. Prior year information has been revised to reflect this change for comparability purposes. See additional details as furnished in Exhibit 99.2 of the Company’s Current Report on Form 8-K, filed with the SEC on March 14, 2024. |
|
4. |
Also referred to by management as earnings before income taxes (“EBT”). |
|
5. |
In the fiscal 2024 period, there were no non-GAAP adjustments to reported EBT margin, net income or earnings per diluted share. The fiscal 2023 period reflects non-GAAP adjustments for charges from the Company’s business optimization, which was completed in 2023 to better align its talent, organization design and spending in support of its most critical strategies. For additional information, see GAAP to non-GAAP reconciliations included in tables later in the release under the heading “GAAP to Non-GAAP Reconciliations.” |
|
6. |
The Company had no outstanding borrowings under its revolving credit facility in 2024 and 2023. |
|
7. |
During the 39 weeks ended November 2, 2024, the Company repurchased 0.8 million shares of its common stock under its share repurchase program at an average price of $203.98 per share, for a total cost of $170.3 million. The Company has $609.3 million remaining under its authorization as of November 2, 2024. |
|
8. |
The Company declared and paid quarterly dividends of $1.10 per share in fiscal 2024 and $1.00 per share in fiscal 2023. |
Quarterly Dividend
On November 25, 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 December 27, 2024 to stockholders of record at the close of business on December 13, 2024.
Full Year 2024 Outlook
The Company’s Full Year Outlook for 2024 is presented below:
|
Metric |
2024 Outlook |
|
Earnings per diluted share |
● $13.65 to 13.95 • Based on approximately 83 million diluted shares outstanding • Based on an effective tax rate of approximately 23% |
|
Net sales |
● $13.2 billion to 13.3 billion |
|
Comparable sales |
● Growth of 3.6% to 4.2% |
|
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:
|
39 Weeks Ended November 2, 2024 |
39 Weeks Ended October 28, 2023 |
|||||
|
DICK’S |
Specialty |
Total (2) |
DICK’S |
Specialty |
Total (2) |
|
|
Beginning stores |
724 |
131 |
855 |
728 |
125 |
853 |
|
Q1 New stores |
1 |
3 |
4 |
— |
— |
— |
|
Q2 New stores |
2 |
5 |
7 |
— |
1 |
1 |
|
Q3 New stores |
2 |
1 |
3 |
1 |
9 |
10 |
|
Stores acquired |
— |
— |
— |
— |
12 |
12 |
|
Closed stores |
2 |
3 |
5 |
4 |
3 |
7 |
|
Ending stores |
727 (3) |
137 |
864 |
725 |
144 |
869 |
|
Relocated stores |
8 |
3 |
11 |
16 |
2 |
18 |
|
Square Footage: (in millions) |
DICK’S Sporting Goods |
Specialty Concept |
Total (2)(4) |
|
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 |
|
Q1 2024 |
39.4 |
3.5 |
42.9 |
|
Q2 2024 |
39.6 |
3.7 |
43.2 |
|
Q3 2024 |
39.9 |
3.7 |
43.5 |
|
(1) |
Includes our Golf Galaxy, Public Lands, Going Going Gone! and other specialty concept stores. As of November 2, 2024, we operated 109 Golf Galaxy stores, 8 Public Lands stores, and 20 Going Going Gone! stores. As of October 28, 2023, we operated 104 Golf Galaxy stores, 7 Public Lands stores, 17 Going Going Gone! stores and other specialty concept 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 November 2, 2024, the Company operated 19 combo stores. |
|
(2) |
Excludes temporary value chain locations, of which the Company operated 30 and 41 as of November 2, 2024 and October 28, 2023, respectively. |
|
(3) |
As of November 2, 2024, includes 17 DICK’S House of Sport stores, with five new openings during fiscal 2024, three of which were relocated and one of which was remodeled from prior store locations. As of November 2, 2024, includes 22 DICK’S Field House stores, with eleven new openings during fiscal 2024, four of which were relocated and three of which were remodeled from prior store locations. |
|
(4) |
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, non-GAAP net income, non-GAAP earnings per diluted share 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. 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. 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; momentum in our business; our growth opportunities, including sales and earnings through positive comps, higher gross margin and SG&A leverage; the repositioning of our real estate portfolio; access to differentiated products; execution of our core strategies; demand from our athletes; expected share repurchases; 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, 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 on Form 10-K, filed with the SEC on March 28, 2024. 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 third 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.
About DICK’S Sporting Goods, Inc.
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, 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 platform for live streaming, scheduling, communications and scorekeeping.
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, dickssportinggoods.jobs and on Instagram, TikTok, Facebook and X.
Contacts:Investor Relations:
Nate Gilch, Senior Director of Investor Relations
DICK’S Sporting Goods, Inc.
[email protected](724) 273-3400
Media Relations:
(724) 273-5552 or [email protected]
Category: Earnings
###
|
DICK’S SPORTING GOODS, INC. AND SUBSIDIARIES |
||||||||
|
CONSOLIDATED STATEMENTS OF INCOME – UNAUDITED |
||||||||
|
(In thousands, except per share data) |
||||||||
|
13 Weeks Ended |
||||||||
|
November 2, |
% of Sales |
October 28, |
% of Sales |
|||||
|
Net sales |
$ 3,057,181 |
100.00 % |
$ 3,042,405 |
100.00 % |
||||
|
Cost of goods sold, including occupancy and |
1,963,737 |
64.23 |
1,980,942 |
65.11 |
||||
|
GROSS PROFIT |
1,093,444 |
35.77 |
1,061,463 |
34.89 |
||||
|
Selling, general and administrative expenses |
790,621 |
25.86 |
768,188 |
25.25 |
||||
|
Pre-opening expenses |
16,779 |
0.55 |
20,331 |
0.67 |
||||
|
INCOME FROM OPERATIONS |
286,044 |
9.36 |
272,944 |
8.97 |
||||
|
Interest expense |
12,947 |
0.42 |
14,382 |
0.47 |
||||
|
Other (income) expense |
(23,976) |
(0.78) |
(10,084) |
(0.33) |
||||
|
INCOME BEFORE INCOME TAXES |
297,073 |
9.72 |
268,646 |
8.83 |
||||
|
Provision for income taxes |
69,260 |
2.27 |
67,540 |
2.22 |
||||
|
NET INCOME |
$ 227,813 |
7.45 % |
$ 201,106 |
6.61 % |
||||
|
EARNINGS PER COMMON SHARE: |
||||||||
|
Basic |
$ 2.83 |
$ 2.46 |
||||||
|
Diluted |
$ 2.75 |
$ 2.39 |
||||||
|
WEIGHTED AVERAGE COMMON SHARES |
||||||||
|
Basic |
80,404 |
81,772 |
||||||
|
Diluted |
82,776 |
84,291 |
||||||
|
Beginning in 2024, the Company included grand opening advertising costs within pre-opening expenses, which were historically included within selling, general and administrative expenses. Prior period amounts have been reclassified to conform to our current year presentation. |
|
DICK’S SPORTING GOODS, INC. AND SUBSIDIARIES |
||||||||
|
CONSOLIDATED STATEMENTS OF INCOME – UNAUDITED |
||||||||
|
(In thousands, except per share data) |
||||||||
|
39 Weeks Ended |
||||||||
|
November 2, |
% of Sales |
October 28, |
% of Sales (1) |
|||||
|
Net sales |
$ 9,549,200 |
100.00 % |
$ 9,108,228 |
100.00 % |
||||
|
Cost of goods sold, including occupancy and |
6,084,762 |
63.72 |
5,908,672 |
64.87 |
||||
|
GROSS PROFIT |
3,464,438 |
36.28 |
3,199,556 |
35.13 |
||||
|
Selling, general and administrative expenses |
2,330,692 |
24.41 |
2,226,820 |
24.45 |
||||
|
Pre-opening expenses |
46,806 |
0.49 |
62,408 |
0.69 |
||||
|
INCOME FROM OPERATIONS |
1,086,940 |
11.38 |
910,328 |
9.99 |
||||
|
Interest expense |
40,304 |
0.42 |
43,809 |
0.48 |
||||
|
Other (income) expense |
(75,124) |
(0.79) |
(56,288) |
(0.62) |
||||
|
INCOME BEFORE INCOME TAXES |
1,121,760 |
11.75 |
922,807 |
10.13 |
||||
|
Provision for income taxes |
256,422 |
2.69 |
172,721 |
1.90 |
||||
|
NET INCOME |
$ 865,338 |
9.06 % |
$ 750,086 |
8.24 % |
||||
|
EARNINGS PER COMMON SHARE: |
||||||||
|
Basic |
$ 10.75 |
$ 9.04 |
||||||
|
Diluted |
$ 10.43 |
$ 8.63 |
||||||
|
WEIGHTED AVERAGE COMMON SHARES |
||||||||
|
Basic |
80,473 |
82,995 |
||||||
|
Diluted |
82,979 |
86,913 |
||||||
|
(1) Column does not add due to rounding |
||||||||
|
Beginning in 2024, the Company included grand opening advertising costs within pre-opening expenses, which were historically included within selling, general and administrative expenses. Prior period amounts have been reclassified to conform to our current year presentation. |
|
DICK’S SPORTING GOODS, INC. AND SUBSIDIARIES |
||||||
|
CONSOLIDATED BALANCE SHEETS – UNAUDITED |
||||||
|
(In thousands) |
||||||
|
November 2, |
October 28, |
February 3, |
||||
|
ASSETS |
||||||
|
CURRENT ASSETS: |
||||||
|
Cash and cash equivalents |
$ 1,458,655 |
$ 1,406,214 |
$ 1,801,220 |
|||
|
Accounts receivable, net |
217,863 |
140,791 |
114,877 |
|||
|
Income taxes receivable |
7,806 |
9,118 |
4,108 |
|||
|
Inventories, net |
3,725,912 |
3,282,911 |
2,848,797 |
|||
|
Prepaid expenses and other current assets |
125,723 |
104,963 |
121,047 |
|||
|
Total current assets |
5,535,959 |
4,943,997 |
4,890,049 |
|||
|
Property and equipment, net |
1,958,017 |
1,569,703 |
1,638,161 |
|||
|
Operating lease assets |
2,382,697 |
2,243,025 |
2,257,482 |
|||
|
Intangible assets, net |
56,472 |
56,754 |
56,663 |
|||
|
Goodwill |
245,857 |
245,857 |
245,857 |
|||
|
Deferred income taxes |
42,031 |
30,817 |
37,846 |
|||
|
Other assets |
230,778 |
192,173 |
185,694 |
|||
|
TOTAL ASSETS |
$ 10,451,811 |
$ 9,282,326 |
$ 9,311,752 |
|||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||
|
CURRENT LIABILITIES: |
||||||
|
Accounts payable |
$ 1,699,957 |
$ 1,630,402 |
$ 1,288,728 |
|||
|
Accrued expenses |
665,678 |
550,006 |
551,369 |
|||
|
Operating lease liabilities |
517,968 |
485,033 |
492,856 |
|||
|
Income taxes payable |
11,241 |
42,010 |
54,508 |
|||
|
Deferred revenue and other liabilities |
322,888 |
281,943 |
364,933 |
|||
|
Total current liabilities |
3,217,732 |
2,989,394 |
2,752,394 |
|||
|
LONG-TERM LIABILITIES: |
||||||
|
Revolving credit borrowings |
— |
— |
— |
|||
|
Senior notes |
1,483,975 |
1,483,026 |
1,483,260 |
|||
|
Long-term operating lease liabilities |
2,487,303 |
2,264,941 |
2,287,714 |
|||
|
Other long-term liabilities |
199,416 |
160,261 |
171,103 |
|||
|
Total long-term liabilities |
4,170,694 |
3,908,228 |
3,942,077 |
|||
|
COMMITMENTS AND CONTINGENCIES |
||||||
|
STOCKHOLDERS’ EQUITY: |
||||||
|
Common stock |
569 |
568 |
568 |
|||
|
Class B common stock |
236 |
236 |
236 |
|||
|
Additional paid-in capital |
1,470,946 |
1,430,802 |
1,448,855 |
|||
|
Retained earnings |
6,183,406 |
5,374,573 |
5,588,914 |
|||
|
Accumulated other comprehensive loss |
(519) |
(462) |
(329) |
|||
|
Treasury stock, at cost |
(4,591,253) |
(4,421,013) |
(4,420,963) |
|||
|
Total stockholders’ equity |
3,063,385 |
2,384,704 |
2,617,281 |
|||
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ 10,451,811 |
$ 9,282,326 |
$ 9,311,752 |
|||
|
DICK’S SPORTING GOODS, INC. AND SUBSIDIARIES |
||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS – UNAUDITED |
||||
|
(In thousands) |
||||
|
39 Weeks Ended |
||||
|
November 2, |
October 28, |
|||
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||
|
Net income |
$ 865,338 |
$ 750,086 |
||
|
Adjustments to reconcile net income to net cash provided by operating |
||||
|
Depreciation and amortization |
290,360 |
271,368 |
||
|
Amortization of deferred financing fees and debt discount |
1,747 |
1,786 |
||
|
Deferred income taxes |
(4,185) |
10,372 |
||
|
Stock-based compensation |
50,716 |
39,552 |
||
|
Other, net |
(6,795) |
9,182 |
||
|
Changes in assets and liabilities: |
||||
|
Accounts receivable |
(25,055) |
(25,831) |
||
|
Inventories |
(877,115) |
(415,291) |
||
|
Prepaid expenses and other assets |
(7,839) |
(2,253) |
||
|
Accounts payable |
404,685 |
256,141 |
||
|
Accrued expenses |
62,024 |
(21,473) |
||
|
Income taxes payable / receivable |
(48,518) |
11,659 |
||
|
Construction allowances provided by landlords |
54,445 |
40,624 |
||
|
Deferred revenue and other liabilities |
(24,586) |
(56,835) |
||
|
Operating lease assets and liabilities |
(54,915) |
(104,373) |
||
|
Net cash provided by operating activities |
680,307 |
764,714 |
||
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||
|
Capital expenditures |
(565,569) |
(409,527) |
||
|
Proceeds from sale of other assets |
11,872 |
27,500 |
||
|
Other investing activities |
(3,548) |
(51,298) |
||
|
Net cash used in investing activities |
(557,245) |
(433,325) |
||
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||
|
Principal paid in connection with exchange of convertible senior notes |
— |
(137) |
||
|
Payments on finance lease obligations |
— |
(609) |
||
|
Proceeds from exercise of stock options |
13,277 |
13,924 |
||
|
Minimum tax withholding requirements |
(41,893) |
(97,956) |
||
|
Cash paid for treasury stock |
(170,268) |
(648,554) |
||
|
Cash dividends paid to stockholders |
(273,097) |
(270,596) |
||
|
Increase in bank overdraft |
6,544 |
154,577 |
||
|
Net cash used in financing activities |
(465,437) |
(849,351) |
||
|
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS |
(190) |
(210) |
||
|
NET DECREASE IN CASH AND CASH EQUIVALENTS |
(342,565) |
(518,172) |
||
|
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
1,801,220 |
1,924,386 |
||
|
CASH AND CASH EQUIVALENTS, END OF PERIOD |
$ 1,458,655 |
$ 1,406,214 |
||
|
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) |
||||||
|
13 Weeks Ended November 2, 2024 |
||||||
|
Selling, general |
Other |
Income |
Net income |
Earnings per |
||
|
GAAP Basis |
$ 790,621 |
$ (23,976) |
$ 297,073 |
$ 227,813 |
$ 2.75 |
|
|
% of Net Sales |
25.86 % |
(0.78) % |
9.72 % |
7.45 % |
||
|
Deferred compensation plan |
(3,476) |
3,476 |
— |
— |
||
|
Non-GAAP Basis |
$ 787,145 |
$ (20,500) |
$ 297,073 |
$ 227,813 |
$ 2.75 |
|
|
% of Net Sales |
25.75 % |
(0.67) % |
9.72 % |
7.45 % |
||
|
(1) Includes non-cash changes in fair value of employee deferred compensation plan investments held in rabbi trusts. |
||||||
|
39 Weeks Ended November 2, 2024 |
||||||
|
Selling, general |
Other |
Income |
Net income |
Earnings per |
||
|
GAAP Basis |
$ 2,330,692 |
$ (75,124) |
$ 1,121,760 |
$ 865,338 |
$ 10.43 |
|
|
% of Net Sales |
24.41 % |
(0.79) % |
11.75 % |
9.06 % |
||
|
Deferred compensation plan |
(17,622) |
17,622 |
— |
— |
||
|
Non-GAAP Basis |
$ 2,313,070 |
$ (57,502) |
$ 1,121,760 |
$ 865,338 |
$ 10.43 |
|
|
% of Net Sales |
24.22 % |
(0.60) % |
11.75 % |
9.06 % |
||
|
(1) Includes non-cash changes in fair value of employee deferred compensation plan investments held in rabbi trusts. |
||||||
|
13 Weeks Ended October 28, 2023 |
||||||
|
Gross profit |
Selling, general |
Other |
Income |
Net income (3) |
Earnings per |
|
|
GAAP Basis |
$ 1,061,463 |
$ 768,188 |
$ (10,084) |
$ 268,646 |
$ 201,106 |
$ 2.39 |
|
% of Net Sales |
34.89 % |
25.25 % |
(0.33) % |
8.83 % |
6.61 % |
|
|
Business optimization |
6,323 |
(46,174) |
— |
52,497 |
38,848 |
|
|
Deferred compensation |
— |
12,046 |
(12,046) |
— |
— |
|
|
Non-GAAP Basis |
$ 1,067,786 |
$ 734,060 |
$ (22,130) |
$ 321,143 |
$ 239,954 |
$ 2.85 |
|
% of Net Sales |
35.10 % |
24.13 % |
(0.73) % |
10.56 % |
7.89 % |
|
|
(1) Included $23.3 million of severance-related costs, $22.9 million of non-cash impairments of store and intangible assets and a $6.3 million write-down of inventory. |
||||||
|
(2) Included 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 approximated the Company’s blended tax rate. |
||||||
|
39 Weeks Ended October 28, 2023 |
||||||
|
Gross profit |
Selling, general |
Other |
Income |
Net income (3) |
Earnings per |
|
|
GAAP Basis |
$ 3,199,556 |
$ 2,226,820 |
$ (56,288) |
$ 922,807 |
$ 750,086 |
$ 8.63 |
|
% of Net Sales |
35.13 % |
24.45 % |
(0.62) % |
10.13 % |
8.24 % |
|
|
Business optimization |
6,323 |
(46,174) |
— |
52,497 |
38,848 |
|
|
Deferred compensation |
— |
2,137 |
(2,137) |
— |
— |
|
|
Non-GAAP Basis |
$ 3,205,879 |
$ 2,182,783 |
$ (58,425) |
$ 975,304 |
$ 788,934 |
$ 9.08 |
|
% of Net Sales |
35.20 % |
23.96 % |
(0.64) % |
10.71 % |
8.66 % |
|
|
(1) Included $23.3 million of severance-related costs, $22.9 million of non-cash impairments of store and intangible assets and a $6.3 million write-down of inventory. |
||||||
|
(2) Included 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 approximated 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. |
||||
|
39 Weeks Ended |
||||
|
November 2, |
October 28, |
|||
|
Gross capital expenditures |
$ (565,569) |
$ (409,527) |
||
|
Construction allowances provided by landlords |
54,445 |
40,624 |
||
|
Net capital expenditures |
$ (511,124) |
$ (368,903) |
||
SOURCE DICK’S Sporting Goods, Inc.
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