Dick's meets store sales and net income expectations

By

Obi Anyanwu

Published
May 19, 2016

Dick’s Sporting Goods, Inc. reported sales for the first quarter of its fiscal year 2016 ended on April 30, 2016.

 
Net sales for the quarter increased 6.1% to $1.7 billion, and same store sales for Dick’s Sporting Goods and Golf Galaxy increased 0.4% and 1.7%, respectively. Consolidated same store sales increased 0.5% and met the company’s expectation of flat to an increase of 1% (first quarter 2015 same store sales increased 1%).
 
Consolidated net income met expectations with $56.9 million, or $0.50 per diluted share, but is a decrease from $63.3 million, or $0.53 per diluted share from the previous year. E-commerce penetration increased to 9.2% from 8.5%.

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The company ended the first quarter with approximately $92 million in cash and cash equivalents and approximately $158 million in outstanding borrowings under its revolving credit facility. Dick’s also repurchased 1.1 million shares at an average cost of $46.81 per share, for a total cost of $50 million. Since fiscal 2013, the company has repurchased $863 million in common stock.
 
"We are pleased to have delivered first quarter earnings at the high end of our expectations in a challenging retail environment," said Edward W. Stack, Chairman and CEO. "The consolidation that is occurring among sporting goods retailers is creating a unique time in the industry. Given the expected near-term liquidation activity in the market, we have adjusted our guidance to contemplate this dynamic. Over the longer term, we remain confident in our ability to aggressively capture displaced market share and to strengthen our leadership position."
 
In the second quarter, Dick’s anticipates reporting consolidated earnings per diluted share in the range of $0.62 to $0.72 and consolidated same store sales in the range of negative 4.0% to negative 1.0%. For the full year, the company anticipates reporting consolidated earnings per diluted share in the range of $2.60 to 2.90.