DICK'S Sporting Goods Reports Fourth Quarter and Full Year 2023 Results; Delivers Largest Sales Quarter in Company History

Rhea-AI Summary

DICK'S Sporting Goods reports 2.8% Fourth Quarter Comparable Store Sales Growth and guides to growth in sales and profitability in 2024. The company delivered a full-year 2023 earnings per diluted share of $12.18 and non-GAAP earnings per diluted share of $12.91. For 2024, they expect 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, with an increased annualized dividend to $4.40 per share.

Positive

• DICK'S Sporting Goods reports positive sales growth in the fourth quarter and full year of 2023.
• The company expects continued growth in sales and profitability in 2024.
• An increase in annualized dividend to $4.40 per share reflects strong financial performance.
• The company's business optimization aims to align talent, organizational design, and spending for strategic efficiency.

Negative

• None.

Insights

Financial Analyst

The reported 2.8% fourth-quarter comparable store sales growth and guidance for continued sales and profitability growth in 2024 suggest a positive trajectory for DICK'S Sporting Goods. The increase in annualized dividend by 10% and the declaration of a quarterly dividend of $1.10 per share reflect confidence in the company's financial health and its commitment to shareholder returns. The 5.0% year-over-year increase in net sales and the strategic business optimizations indicate a focus on operational efficiency and market expansion.

Investors should note the company's strategic investments in new store formats and omnichannel experiences, which are likely to enhance customer engagement and support market share gains in a fragmented industry. The reported share repurchases and dividend payments demonstrate an aggressive capital allocation strategy aimed at enhancing shareholder value. However, a slight decrease in cash and cash equivalents and the retirement of Convertible Senior Notes may require monitoring for their impact on the company's financial flexibility.

Market Research Analyst

DICK'S Sporting Goods' reported increase in transactions contributing to the full year comparable store sales growth of 2.4% suggests effective customer acquisition and retention strategies. The company's focus on repositioning its portfolio through innovative store concepts like House of Sport and Golf Galaxy Performance Center is indicative of a customer-centric approach to retail, potentially increasing its competitive edge.

The emphasis on omnichannel growth is particularly relevant in the context of evolving consumer shopping behaviors, where seamless integration between online and offline channels is increasingly important. The company's performance within the $140-billion-dollar sporting goods industry, alongside its market share gains, provides a valuable perspective on consumer trends and the effectiveness of DICK'S Sporting Goods' strategic initiatives.

Retail Industry Expert

The reported results highlight several key trends within the retail sector, including the importance of omnichannel strategies and the potential of differentiated store formats. DICK'S Sporting Goods' investment in its next-generation stores and performance centers suggests a long-term vision that aligns with the experiential retail trend. The business optimization efforts, which included streamlining operations and integrating outdoor specialty businesses, are reflective of the broader industry's move towards operational agility and cost management.

Additionally, the company's ability to expand margins during the fourth quarter, even with the backdrop of a competitive retail environment, speaks to effective inventory and pricing strategies. The growth in gross margin and EBT margin expansion during the quarter are particularly noteworthy, as they suggest improved operational efficiency and cost control measures.

– 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 53^rd 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 53^rd 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.

FAQ

What was the Fourth Quarter Comparable Store Sales Growth reported by DICK'S Sporting Goods?

DICK'S Sporting Goods reported a 2.8% Fourth Quarter Comparable Store Sales Growth.

What are the earnings per diluted share for full year 2023 reported by DICK'S Sporting Goods?

DICK'S Sporting Goods reported earnings per diluted share of $12.18 and non-GAAP earnings per diluted share of $12.91 for full year 2023.

What is the outlook for 2024 in terms of sales and earnings for DICK'S Sporting Goods?

For 2024, DICK'S Sporting Goods 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.

What is the increased annualized dividend per share announced by DICK'S Sporting Goods?

DICK'S Sporting Goods increased the annualized dividend to $4.40 per share.

What is the purpose of the business optimization conducted by DICK'S Sporting Goods?

The business optimization aims to align talent, organizational design, and spending for strategic efficiency at DICK'S Sporting Goods.