Delaware | 001-31463 | 16-1241537 | ||||||
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, $0.01 par value | DKS | The New York Stock Exchange |
Exhibit No. | Description | |||||||
Press Release dated September 4, 2024 by Dick's Sporting Goods, Inc. furnished herewith | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
DICK'S SPORTING GOODS, INC. | ||||||||
Date: September 4, 2024 | By: | /s/ NAVDEEP GUPTA | ||||||
Name: | Navdeep Gupta | |||||||
Title: | Executive Vice President – Chief Financial Officer |
Exhibit No. | Description | |||||||
Press Release dated September 4, 2024 by Dick's Sporting Goods, Inc. furnished herewith | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
Exhibit 99.1 |
FOR IMMEDIATE RELEASE | ![]() |
"Our strong second quarter demonstrated the continued success of our long-term strategies and how DICK'S is truly differentiated within the industry. We are very enthusiastic about the significant growth opportunities ahead of us, including House of Sport and the repositioning of our portfolio. The future of our business is very bright, and I'd like to thank all our teammates for their strong execution in Q2 and for their dedication to DICK'S Sporting Goods."
Ed Stack, Executive Chairman
"We delivered a very strong second quarter. Powered by our compelling omni-channel athlete experience, differentiated product assortment, best-in-class teammate experience and our ability to create deep engagement with the DICK'S brand, we are driving sustained top-line momentum and gaining market share. Our Q2 comps were driven by growth in average ticket and transactions, and with growth in sales, gross margin expansion and SG&A leverage, we delivered EBT margin of nearly 14%. Because of our strong Q2 performance and the confidence we have in our business, we are again raising our full year outlook."
Lauren Hobart, President and Chief Executive Officer
| |||||
Second Quarter Operating Results
(dollars in millions, except per share data)
|
13 Weeks Ended | Change (1) |
||||||||||||||||||
August 3, 2024 | July 29, 2023 | |||||||||||||||||||
Net sales (2) |
$ | 3,474 | $ | 3,224 | $ | 250 | 7.8% | |||||||||||||
Comparable sales (2) (3) |
4.5% | 2.0% | ||||||||||||||||||
Income before income taxes (4) |
$ | 482 | $ | 326 | $ | 156 | 48% | |||||||||||||
Income before income taxes (4) (% of net sales) |
13.9% | 10.1% | 378 bps | |||||||||||||||||
Effective tax rate | 24.9% | 25.0% | (12) bps | |||||||||||||||||
Net income | $ | 362 | $ | 244 | $ | 118 | 48% | |||||||||||||
Earnings per diluted share (2) |
$ | 4.37 | $ | 2.82 | $ | 1.55 | 55% | |||||||||||||
Year-to-Date Operating Results
(dollars in millions, except per share data)
|
26 Weeks Ended | Change (1) |
||||||||||||||||||
August 3, 2024 | July 29, 2023 | |||||||||||||||||||
Net sales (2) |
$ | 6,492 | $ | 6,066 | $ | 426 | 7.0% | |||||||||||||
Comparable sales (2) (3) |
4.9% | 2.7% | ||||||||||||||||||
Income before income taxes (4) |
$ | 825 | $ | 654 | $ | 171 | 26% | |||||||||||||
Income before income taxes (4) (% of net sales) |
12.7% | 10.8% | 192 bps | |||||||||||||||||
Effective tax rate | 22.7% | 16.1% | 662 bps | |||||||||||||||||
Net income | $ | 638 | $ | 549 | $ | 89 | 16% | |||||||||||||
Earnings per diluted share (2) |
$ | 7.67 | $ | 6.23 | $ | 1.44 | 23% | |||||||||||||
Balance Sheet
(in millions)
|
As of
August 3, 2024
|
As of
July 29, 2023
|
$
Change (1)
|
%
Change (1)
|
||||||||||
Cash and cash equivalents | $ | 1,692 | $ | 1,902 | $ | (210) | (11)% | |||||||
Inventories, net | $ | 3,178 | $ | 2,851 | $ | 327 | 11% | |||||||
Total debt (5) |
$ | 1,484 | $ | 1,483 | $ | 1 | —% | |||||||
Capital Allocation
(in millions)
|
26 Weeks Ended |
$
Change (1)
|
%
Change (1)
|
|||||||||||
August 3, 2024 | July 29, 2023 | |||||||||||||
Share repurchases (6) |
$ | 164 | $ | 260 | $ | (97) | (37)% | |||||||
Dividends paid (7) |
$ | 183 | $ | 189 | $ | (6) | (3)% | |||||||
Gross capital expenditures | $ | 372 | $ | 249 | $ | 124 | 50% | |||||||
Net capital expenditures (8) |
$ | 326 | $ | 218 | $ | 108 | 50% | |||||||
Metric | 2024 Outlook | ||||
Earnings per diluted share |
●$13.55 to 13.90
•Based on approximately 83 million diluted shares outstanding
•Based on an effective tax rate of approximately 23%
|
||||
Net sales | ●$13.1 billion to 13.2 billion |
||||
Comparable sales |
●Growth of 2.5% to 3.5% |
||||
Capital expenditures |
●Approximately $900 million on a gross basis
●Approximately $800 million on a net basis
|
26 Weeks Ended August 3, 2024 | 26 Weeks Ended July 29, 2023 | |||||||||||||||||||
DICK'S Sporting Goods | Specialty Concept Stores (1) |
Total (2) |
DICK'S Sporting Goods | Specialty Concept Stores (1) |
Total (2) |
|||||||||||||||
Beginning stores | 724 | 131 | 855 | 728 | 125 | 853 | ||||||||||||||
Q1 New stores |
1 | 3 | 4 | — | — | — | ||||||||||||||
Q2 New stores |
2 | 5 | 7 | — | 1 | 1 | ||||||||||||||
Stores acquired | — | — | — | — | 12 | 12 | ||||||||||||||
Closed stores | 2 | 3 | 5 | 3 | 3 | 6 | ||||||||||||||
Ending stores | 725 (3) |
136 | 861 | 725 | 135 | 860 | ||||||||||||||
Relocated stores | 5 | 1 | 6 | 10 | 1 | 11 | ||||||||||||||
Square Footage:
(in millions)
|
DICK'S Sporting Goods | Specialty Concept Stores (1) |
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 | ||||||||
13 Weeks Ended | ||||||||||||||||||||||||||
August 3, 2024 |
% of
Sales (1)
|
July 29, 2023 |
% of
Sales (1)
|
|||||||||||||||||||||||
Net sales |
$ | 3,473,635 | 100.00 | % | $ | 3,223,643 | 100.00 | % | ||||||||||||||||||
Cost of goods sold, including occupancy and distribution costs | 2,197,935 | 63.27 | 2,114,167 | 65.58 | ||||||||||||||||||||||
GROSS PROFIT | 1,275,700 | 36.73 | 1,109,476 | 34.42 | ||||||||||||||||||||||
Selling, general and administrative expenses |
796,673 | 22.93 | 764,788 | 23.72 | ||||||||||||||||||||||
Pre-opening expenses |
8,931 | 0.26 | 32,929 | 1.02 | ||||||||||||||||||||||
INCOME FROM OPERATIONS | 470,096 | 13.53 | 311,759 | 9.67 | ||||||||||||||||||||||
Interest expense |
13,521 | 0.39 | 14,384 | 0.45 | ||||||||||||||||||||||
Other (income) expense | (25,756) | (0.74) | (28,499) | (0.88) | ||||||||||||||||||||||
INCOME BEFORE INCOME TAXES | 482,331 | 13.89 | 325,874 | 10.11 | ||||||||||||||||||||||
Provision for income taxes | 120,101 | 3.46 | 81,543 | 2.53 | ||||||||||||||||||||||
NET INCOME | $ | 362,230 | 10.43 | % | $ | 244,331 | 7.58 | % | ||||||||||||||||||
EARNINGS PER COMMON SHARE: | ||||||||||||||||||||||||||
Basic |
$ | 4.50 | $ | 2.90 | ||||||||||||||||||||||
Diluted | $ | 4.37 | $ | 2.82 | ||||||||||||||||||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: |
||||||||||||||||||||||||||
Basic |
80,432 | 84,142 | ||||||||||||||||||||||||
Diluted |
82,814 | 86,783 | ||||||||||||||||||||||||
(1) Column does not add due to rounding |
26 Weeks Ended | ||||||||||||||||||||||||||
August 3, 2024 |
% of
Sales (1)
|
July 29, 2023 |
% of Sales |
|||||||||||||||||||||||
Net sales |
$ | 6,492,019 | 100.00 | % | $ | 6,065,823 | 100.00 | % | ||||||||||||||||||
Cost of goods sold, including occupancy and distribution costs | 4,121,025 | 63.48 | 3,927,731 | 64.75 | ||||||||||||||||||||||
GROSS PROFIT | 2,370,994 | 36.52 | 2,138,092 | 35.25 | ||||||||||||||||||||||
Selling, general and administrative expenses |
1,540,071 | 23.72 | 1,458,632 | 24.05 | ||||||||||||||||||||||
Pre-opening expenses |
30,027 | 0.46 | 42,078 | 0.69 | ||||||||||||||||||||||
INCOME FROM OPERATIONS | 800,896 | 12.34 | 637,382 | 10.51 | ||||||||||||||||||||||
Interest expense |
27,357 | 0.42 | 29,427 | 0.49 | ||||||||||||||||||||||
Other (income) expense | (51,148) | (0.79) | (46,206) | (0.76) | ||||||||||||||||||||||
INCOME BEFORE INCOME TAXES | 824,687 | 12.70 | 654,161 | 10.78 | ||||||||||||||||||||||
Provision for income taxes | 187,162 | 2.88 | 105,181 | 1.73 | ||||||||||||||||||||||
NET INCOME | $ | 637,525 | 9.82 | % | $ | 548,980 | 9.05 | % | ||||||||||||||||||
EARNINGS PER COMMON SHARE: | ||||||||||||||||||||||||||
Basic |
$ | 7.92 | $ | 6.57 | ||||||||||||||||||||||
Diluted |
$ | 7.67 | $ | 6.23 | ||||||||||||||||||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: |
||||||||||||||||||||||||||
Basic |
80,507 | 83,607 | ||||||||||||||||||||||||
Diluted |
83,080 | 88,224 | ||||||||||||||||||||||||
(1) Column does not add due to rounding |
August 3, 2024 |
July 29, 2023 |
February 3, 2024 |
||||||||||||||||||
ASSETS | ||||||||||||||||||||
CURRENT ASSETS: | ||||||||||||||||||||
Cash and cash equivalents | $ | 1,691,899 | $ | 1,901,903 | $ | 1,801,220 | ||||||||||||||
Accounts receivable, net | 168,495 | 139,842 | 114,877 | |||||||||||||||||
Income taxes receivable | 11,410 | 13,795 | 4,108 | |||||||||||||||||
Inventories, net | 3,178,024 | 2,851,366 | 2,848,797 | |||||||||||||||||
Prepaid expenses and other current assets | 130,707 | 115,138 | 121,047 | |||||||||||||||||
Total current assets | 5,180,535 | 5,022,044 | 4,890,049 | |||||||||||||||||
Property and equipment, net | 1,862,206 | 1,520,678 | 1,638,161 | |||||||||||||||||
Operating lease assets | 2,346,020 | 2,269,101 | 2,257,482 | |||||||||||||||||
Intangible assets, net | 56,520 | 62,993 | 56,663 | |||||||||||||||||
Goodwill | 245,857 | 250,503 | 245,857 | |||||||||||||||||
Deferred income taxes | 31,928 | 24,278 | 37,846 | |||||||||||||||||
Other assets | 212,893 | 207,767 | 185,694 | |||||||||||||||||
TOTAL ASSETS | $ | 9,935,959 | $ | 9,357,364 | $ | 9,311,752 | ||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
CURRENT LIABILITIES: | ||||||||||||||||||||
Accounts payable | $ | 1,426,650 | $ | 1,320,662 | $ | 1,288,728 | ||||||||||||||
Accrued expenses | 604,372 | 597,740 | 551,369 | |||||||||||||||||
Operating lease liabilities | 489,511 | 499,189 | 492,856 | |||||||||||||||||
Income taxes payable | 58,454 | 52,699 | 54,508 | |||||||||||||||||
Deferred revenue and other liabilities | 342,019 | 305,389 | 364,933 | |||||||||||||||||
Total current liabilities | 2,921,006 | 2,775,679 | 2,752,394 | |||||||||||||||||
LONG-TERM LIABILITIES: | ||||||||||||||||||||
Revolving credit borrowings | — | — | — | |||||||||||||||||
Senior notes | 1,483,734 | 1,482,794 | 1,483,260 | |||||||||||||||||
Long-term operating lease liabilities | 2,423,264 | 2,276,037 | 2,287,714 | |||||||||||||||||
Other long-term liabilities | 183,070 | 178,493 | 171,103 | |||||||||||||||||
Total long-term liabilities | 4,090,068 | 3,937,324 | 3,942,077 | |||||||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||||||||||
STOCKHOLDERS' EQUITY: | ||||||||||||||||||||
Common stock | 568 | 602 | 568 | |||||||||||||||||
Class B common stock | 236 | 236 | 236 | |||||||||||||||||
Additional paid-in capital | 1,463,498 | 1,419,628 | 1,448,855 | |||||||||||||||||
Retained earnings | 6,045,601 | 5,255,787 | 5,588,914 | |||||||||||||||||
Accumulated other comprehensive loss | (465) | (277) | (329) | |||||||||||||||||
Treasury stock, at cost | (4,584,553) | (4,031,615) | (4,420,963) | |||||||||||||||||
Total stockholders' equity | 2,924,885 | 2,644,361 | 2,617,281 | |||||||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 9,935,959 | $ | 9,357,364 | $ | 9,311,752 | ||||||||||||||
26 Weeks Ended | ||||||||||||||
August 3, 2024 |
July 29, 2023 |
|||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||
Net income | $ | 637,525 | $ | 548,980 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Depreciation and amortization | 189,219 | 168,900 | ||||||||||||
Amortization of deferred financing fees and debt discount | 1,162 | 1,210 | ||||||||||||
Deferred income taxes | 5,918 | 16,911 | ||||||||||||
Stock-based compensation | 32,812 | 28,006 | ||||||||||||
Other, net | 2,443 | (1,464) | ||||||||||||
Changes in assets and liabilities: | ||||||||||||||
Accounts receivable | (34,396) | (30,311) | ||||||||||||
Inventories | (329,227) | 16,254 | ||||||||||||
Prepaid expenses and other assets | (10,464) | (10,088) | ||||||||||||
Accounts payable | 141,555 | 14,404 | ||||||||||||
Accrued expenses | 5,450 | 14,004 | ||||||||||||
Income taxes payable / receivable | (3,356) | 17,671 | ||||||||||||
Construction allowances provided by landlords | 46,556 | 30,995 | ||||||||||||
Deferred revenue and other liabilities | (22,501) | (35,648) | ||||||||||||
Operating lease assets and liabilities | (36,548) | (86,331) | ||||||||||||
Net cash provided by operating activities | 626,148 | 693,493 | ||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||
Capital expenditures | (372,105) | (248,560) | ||||||||||||
Proceeds from sale of other assets | 8,775 | 27,500 | ||||||||||||
Other investing activities | (3,548) | (47,719) | ||||||||||||
Net cash used in investing activities | (366,878) | (268,779) | ||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||
Principal paid in connection with exchange of convertible senior notes | — | (137) | ||||||||||||
Payments on finance lease obligations | — | (401) | ||||||||||||
Proceeds from exercise of stock options | 12,950 | 13,332 | ||||||||||||
Minimum tax withholding requirements | (31,111) | (96,992) | ||||||||||||
Cash paid for treasury stock | (163,567) | (260,438) | ||||||||||||
Cash dividends paid to stockholders | (183,094) | (189,110) | ||||||||||||
(Decrease) increase in bank overdraft | (3,633) | 86,574 | ||||||||||||
Net cash used in financing activities | (368,455) | (447,172) | ||||||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (136) | (25) | ||||||||||||
NET DECREASE IN CASH AND CASH EQUIVALENTS | (109,321) | (22,483) | ||||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 1,801,220 | 1,924,386 | ||||||||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 1,691,899 | $ | 1,901,903 | ||||||||||
13 Weeks Ended August 3, 2024 | |||||||||||||||||
Selling, general and administrative expenses | Other (income) expense | Income before income taxes | Net income | Earnings per diluted share | |||||||||||||
GAAP Basis | $ | 796,673 | $ | (25,756) | $ | 482,331 | $ | 362,230 | $ | 4.37 | |||||||
% of Net Sales | 22.93 | % | (0.74) | % | 13.89 | % | 10.43 | % | |||||||||
Deferred compensation plan adjustments (1) |
(10,399) | 10,399 | — | — | |||||||||||||
Non-GAAP Basis | $ | 786,274 | $ | (15,357) | $ | 482,331 | $ | 362,230 | $ | 4.37 | |||||||
% of Net Sales | 22.64 | % | (0.44) | % | 13.89 | % | 10.43 | % |
26 Weeks Ended August 3, 2024 | |||||||||||||||||
Selling, general and administrative expenses | Other (income) expense | Income before income taxes | Net income | Earnings per diluted share | |||||||||||||
GAAP Basis | $ | 1,540,071 | $ | (51,148) | $ | 824,687 | $ | 637,525 | $ | 7.67 | |||||||
% of Net Sales | 23.72 | % | (0.79) | % | 12.70 | % | 9.82 | % | |||||||||
Deferred compensation plan adjustments (1) |
(14,146) | 14,146 | — | — | |||||||||||||
Non-GAAP Basis | $ | 1,525,925 | $ | (37,002) | $ | 824,687 | $ | 637,525 | $ | 7.67 | |||||||
% of Net Sales | 23.50 | % | (0.57) | % | 12.70 | % | 9.82 | % | |||||||||
13 Weeks Ended July 29, 2023 | |||||||||||||||||
Selling, general and administrative expenses | Other (income) expense | Income before income taxes | Net income | Earnings per diluted share | |||||||||||||
GAAP Basis | $ | 764,788 | $ | (28,499) | $ | 325,874 | $ | 244,331 | $ | 2.82 | |||||||
% of Net Sales | 23.72 | % | (0.88) | % | 10.11 | % | 7.58 | % | |||||||||
Deferred compensation plan adjustments (1) |
(9,730) | 9,730 | — | — | |||||||||||||
Non-GAAP Basis | $ | 755,058 | $ | (18,769) | $ | 325,874 | $ | 244,331 | $ | 2.82 | |||||||
% of Net Sales | 23.42 | % | (0.58) | % | 10.11 | % | 7.58 | % |
26 Weeks Ended July 29, 2023 | |||||||||||||||||
Selling, general and administrative expenses | Other (income) expense | Income before income taxes | Net income | Earnings per diluted share | |||||||||||||
GAAP Basis | $ | 1,458,632 | $ | (46,206) | $ | 654,161 | $ | 548,980 | $ | 6.23 | |||||||
% of Net Sales | 24.05 | % | (0.76) | % | 10.78 | % | 9.05 | % | |||||||||
Deferred compensation plan adjustments (1) |
(9,909) | 9,909 | — | — | |||||||||||||
Non-GAAP Basis | $ | 1,448,723 | $ | (36,297) | $ | 654,161 | $ | 548,980 | $ | 6.23 | |||||||
% of Net Sales | 23.88 | % | (0.60) | % | 10.78 | % | 9.05 | % |
26 Weeks Ended | ||||||||||||||
August 3, 2024 |
July 29, 2023 |
|||||||||||||
Gross capital expenditures | $ | (372,105) | $ | (248,560) | ||||||||||
Construction allowances provided by landlords | 46,556 | 30,995 | ||||||||||||
Net capital expenditures | $ | (325,549) | $ | (217,565) |