{"id":453509,"date":"2021-03-09T07:33:40","date_gmt":"2021-03-09T12:33:40","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=453509"},"modified":"2021-03-09T07:33:40","modified_gmt":"2021-03-09T12:33:40","slug":"dicks-sporting-goods-reports-record-fourth-quarter-and-full-year-results-delivers-19-3-increase-in-fourth-quarter-same-store-sales","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/dicks-sporting-goods-reports-record-fourth-quarter-and-full-year-results-delivers-19-3-increase-in-fourth-quarter-same-store-sales\/","title":{"rendered":"DICK’S Sporting Goods Reports Record Fourth Quarter and Full Year Results; Delivers 19.3% Increase in Fourth Quarter Same Store Sales"},"content":{"rendered":"
\n

– Consolidated same store sales increased a record-setting 9.9% for the full year 2020<\/h2>\n

– eCommerce sales increased 100% for the full year 2020<\/h2>\n

– Company delivered full year 2020 earnings per diluted share of $5.72 and non-GAAP earnings per diluted share of $6.12, up 71% and 66% respectively versus 2019 earnings per diluted share of $3.34 and non-GAAP earnings per diluted share of $3.69<\/h2>\n

– Company announces a 16% increase in its quarterly dividend<\/h2>\n

PR Newswire<\/p>\n<\/p><\/div>\n

\n

\n PITTSBURGH<\/span>, March 9, 2021<\/span> \/PRNewswire\/ —\u00a0DICK’S Sporting Goods,\u00a0Inc. (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 January\u00a030, 2021.<\/p>\n

\n

\n
\n \"\"
\n <\/a>\n <\/p>\n<\/p><\/div>\n

\n
\n Fourth Quarter Results<\/u>
\n <\/b>
\n \u00a0<\/b>\n <\/p>\n

Net sales for the fourth quarter of 2020 were $3.13 billion<\/span>, an increase of 19.8% compared to the fourth quarter of 2019. This increase was driven by a 19.3% increase in consolidated same store sales, which included an increase in eCommerce sales of 57%. eCommerce penetration for the fourth quarter of 2020 was approximately 32% of total net sales, compared to approximately 25% during the fourth quarter of 2019. Fourth quarter 2019 consolidated same store sales increased 5.3%. <\/p>\n

The Company reported consolidated net income for the fourth quarter ended January 30, 2021<\/span> of $219.6 million<\/span>, or $2.21<\/span> per diluted share. As a result of actions taken to prioritize the health and well-being of its teammates and athletes, the Company incurred approximately $51 million<\/span> of pre-tax incremental teammate compensation and safety costs in response to COVID-19, or $0.38<\/span> per diluted share, net of tax, during the 13 weeks ended January 30, 2021<\/span>. The Company reported consolidated net income for the fourth quarter ended February 1, 2020<\/span> of $69.8 million<\/span>, or $0.81<\/span> per diluted share.<\/p>\n

On a non-GAAP basis, the Company reported consolidated net income for the fourth quarter ended January 30, 2021<\/span> of $225.0 million<\/span>, or $2.43<\/span> 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 fourth quarter ended February 1, 2020<\/span>, the Company reported consolidated net income on a non-GAAP basis of $113.3 million<\/span>, or $1.32<\/span> per diluted share, which excluded hunt restructuring charges. The GAAP to non-GAAP reconciliations are included in a table later in the release under the heading “GAAP to Non-GAAP Reconciliations.” <\/p>\n

“We’ve never had a year quite like 2020. We were challenged in numerous ways, as were so many others, but as an organization we not only survived \u2013 we thrived, delivering record-setting sales and earnings,” said Ed Stack<\/span>, Executive Chairman and Chief Merchandising Officer. “Most importantly, we cared for each other and our communities every step of the way. We prioritized the health and safety of our teammates and athletes and invested in our frontline hourly store and distribution center teammates through our premium pay program. Additionally, to help kids get back on the field, we donated $30 million<\/span> to our Foundation to support Sports Matter (sportsmatter.org<\/a><\/u>) and other charitable programs within the communities we serve.”<\/p>\n

“We are very pleased with our strong fourth quarter sales and earnings results,” said Lauren Hobart<\/span>, President and Chief Executive Officer. “The strength of our diverse category portfolio, technology capabilities and advanced omni-channel execution once again helped us capitalize on the favorable shifts in consumer demand across golf, outdoor activities, home fitness and active lifestyle. Our performance is a testament to the strong execution from our 50,000 dedicated teammates who continued to safely serve our athletes and communities.”<\/p>\n

Ms. Hobart continued, “It’s clear that our strategies over the past several years are working and have set us up for long-term success. As we enter 2021, our business has so much momentum, and we have been pleased with our start to the year. Our focus in 2021 will center around enhancing our existing strategies to accelerate our core and enable long-term growth.”<\/p>\n

\n
\n Balance Sheet<\/u>
\n <\/b>\n <\/p>\n

The Company ended the fourth quarter of 2020 with approximately $1.7 billion<\/span> in cash and cash equivalents and no outstanding borrowings under its $1.855 billion<\/span> revolving credit facility. In April, the Company issued $575 million<\/span> aggregate principal amount of 3.25% Convertible Senior Notes, which added over $500 million<\/span> of net proceeds to its cash position.<\/p>\n

Total inventory\u00a0decreased 11.3%\u00a0at the end of the\u00a0fourth\u00a0quarter of\u00a02020\u00a0as compared to the end of the\u00a0fourth\u00a0quarter of\u00a02019. <\/p>\n

\n
\n Full Year Results<\/u>
\n <\/b>\n <\/p>\n

Net sales for the 52 weeks ended January 30, 2021<\/span> increased 9.5% to approximately $9.58 billion<\/span>. Consolidated same store sales increased a record-setting 9.9% despite temporary store closures during March, April and May to help prevent the spread of COVID-19. eCommerce sales increased 100%. eCommerce penetration for the 52 weeks ended January 30, 2021<\/span> was approximately 30% of total net sales, compared to approximately 16% during the 52 weeks ended February 1, 2020<\/span>. Consolidated same store sales increased 3.7% for the 52 weeks ended February 1, 2020<\/span>.<\/p>\n

The Company reported consolidated net income for the 52 weeks ended January 30, 2021<\/span> of $530.3 million<\/span>, or $5.72<\/span> per diluted share. As a result of actions taken to prioritize the health and well-being of its teammates and athletes in response to COVID-19, the Company incurred approximately $175 million<\/span> of pre-tax incremental teammate compensation and safety costs, or $1.40<\/span> per diluted share, net of tax, during the 52 weeks ended January 30, 2021<\/span>. For the 52 weeks ended February 1, 2020<\/span>, the Company reported consolidated net income of $297.5 million<\/span>, or $3.34<\/span> per diluted share.<\/p>\n

On a non-GAAP basis, the Company reported consolidated net income for the 52 weeks ended January 30, 2021<\/span>, of $546.2 million<\/span>, or $6.12<\/span> 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 52 weeks ended February 1, 2020<\/span>, the Company reported consolidated net income on a non-GAAP basis of $329.1 million<\/span>, or $3.69<\/span> per diluted share, which excluded hunt restructuring charges, a gain on the sale of subsidiaries, non-cash asset impairments and the favorable 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.”<\/p>\n

\n
\n Capital Allocation<\/u>
\n <\/b>\n <\/p>\n

On March\u00a05, 2021, the Company’s Board of Directors authorized and declared a quarterly dividend in the amount of $0.3625<\/span> per share on the Company’s Common Stock and Class B Common Stock. The dividend is payable in cash on March\u00a026, 2021 to stockholders of record at the close of business on March\u00a019, 2021. This dividend represents an increase of 16% over the Company’s previous quarterly per share amount and is equivalent to an annualized dividend of $1.45<\/span> per share.<\/p>\n

For the 52 weeks ended January 30, 2021<\/span>, capital expenditures totaled $224.0 million<\/span> on a gross basis, or $167.3 million<\/span> net of construction allowances provided by landlords. For the 52 weeks ended February 1, 2020<\/span>, capital expenditures totaled $217.5 million<\/span> on a gross basis, or $179.5 million<\/span> net of construction allowances provided by landlords.<\/p>\n

\n
\n Full Year 2021 Outlook<\/u>
\n <\/b>\n <\/p>\n

The Company’s Full Year Outlook for 2021 is presented below: <\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n

\n
\n 2021 Outlook<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n

\n
\n Low End<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n High End<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n Midpoint % Change<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n
\n
\n (in millions, except per share amounts)<\/u>
\n <\/i>
\n <\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n 2019<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n 2020<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n 2021 (E)<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n vs 2019<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n vs 2020<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Net Sales<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 8,751<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 9,584<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 9,544<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 9,935<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 11<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n %<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n 2<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n %<\/i>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n Consolidated same store sales<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n 3.7<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n %<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n 9.9<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n %<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n (2.0)<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n %<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n 2.0<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n %<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Income before income taxes<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 408<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 712<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 520<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 620<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 40<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n %<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n (20)<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n %<\/i>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n % of Net Sales<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n 4.7<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n %<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n 7.4<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n %<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n 5.4<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n %<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n 6.2<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n %<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Income before income taxes – non-GAAP<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 440<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 733<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 550<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 650<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 36<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n %<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n (18)<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n %<\/i>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n % of Net Sales – non-GAAP<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n 5.0<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n %<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n 7.6<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n %<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n 5.8<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n %<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n 6.5<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n %<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Earnings per diluted share<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 3.34<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 5.72<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 3.81<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 4.55<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 25<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n %<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n (27)<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n %<\/i>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Earnings per diluted share – non-GAAP<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 3.69<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 6.12<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 4.40<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 5.20<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 30<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n %<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n (22)<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n %<\/i>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Weighted average diluted shares<\/span>\n <\/p>\n<\/td>\n

\n

\n 89<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 93<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 105<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 105<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Weighted average diluted shares – non-GAAP<\/span>\n <\/p>\n<\/td>\n

\n

\n 89<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 89<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 96<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 96<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Gross capital expenditures<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 217<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 224<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 345<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 370<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Net capital expenditures<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 180<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 167<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 275<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 300<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n<\/table><\/div>\n

\u00a0<\/p>\n