Dick’s Sporting Goods Q4 2017 earnings rise amidst expansion
Coraopolis, Pennsylvania-based sports retailer Dick’s Sporting Goods, Inc. has announced high single-digit sales growth in the fourth quarter and full year 2017, leading to improved earnings as the company extends both its digital penetration and physical store network.
Earnings for the 14-week period ended February 3, 2018 totaled $116.0 million, up from the $90.2 million reported for the 13-week period ended January 28, 2017.
Sales for Q4 2017 were up 7.3% to approximately $2.66 billion, while same store sales rose 2% on a 13-week to 13-week comparative basis compared to a 5% increase in Q4 2016.
Q4 2017 marked the first holiday season that Dick’s Sporting Goods operated through its new web platform and e-commerce showed particular growth in the period, with sales rising 9% on a 13-week to 13-week comparative basis. As the company pushes forward with its digital penetration, e-commerce accounted for 19% of total net sales in the quarter, compared to 17.9% during the fourth quarter of 2016.
“Amidst a competitive environment, we are very pleased to deliver fourth quarter results in line with our expectations, driving growth across key businesses. As expected, margins remained under pressure, however the decline was less than we anticipated,” stated Edward W. Stack, Dick’s Sporting Goods chairman and CEO in a release.
Earnings for the 53 weeks ended February 3, 2018 came to $323.4 million, up from the $287.4 million reported in the 52-week prior year.
Sales in 2017 grew 8.4% to $8.59 billion, an increase which was due, in large part, to the expansion of the company’s store network as well as the benefit of fiscal 2017’s 53rd week. Same store sales decreased 0.3% on a 52-week to 52-week comparative basis.
Having worked to extend its store network in 2017, the company currently operates 716 Dick's Sporting Goods stores in 47 US states, 94 Golf Galaxy stores in 32 states and 35 Field & Stream stores in 16 states for a total of 845 locations, up from 797 at the end of fiscal 2016.
Furthermore, Dick’s Sporting Goods is planning to open approximately 19 more stores in 2018.
“In 2018, we expect stronger product innovation from select key partners and the continued expansion of our private brands to result in less margin pressure than previously expected. We see meaningful opportunity to drive improvements across our business and will make significant investments that will continue to position Dick's Sporting Goods as the leader in our industry”, commented Stack.
The company’s outlook for 2018 currently predicts that same store sales will remain flat or see a low single-digit decline on a 52-week to 52-week basis, with earnings per diluted share approximated to total somewhere between $2.80 and 3.00.
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