Dick’s Sporting Goods delivers strong Q2 amid merchandising shift
Dick’s Sporting Goods reported earnings and sales that topped Street expectations as it continues to move away from the hunting category.
The nation’s largest sporting goods retailer has eliminated all “hunt’ products, including hunting rifles, from about 125 stores. The space has been filled with “categories and products that can drive growth,” chairman and CEO Edward Stack said. The move, which was announced back in March, is part of Dick’s ongoing strategic review of its hunting business, including the 35-store Field & Stream division.
In February 2018, following the mass shootings in Parkland, Fla., Dick’s ended the sale of assault-style rifles and high-capacity magazines and of all guns and ammunition to anyone under 21 years old.
Dick’s net income was $112.5 million, or $1.26 per share, for the quarter ended August 3, compared with $119.4 million, or $1.20 per share, in the year-ago period. Analysts had estimated earnings per share of $1.21
Sales rose 3.2% to $2.26 billion, beating estimates of $2.21 billion. E-commerce sales for the quarter increased 21% and accounted for approximately 12% of total net sales.
Same-store sales rose 3.2%, which the company said was its strongest showing since 2016. Sales were driven by increases in both average ticket and transactions.
“We saw growth across each of our three primary categories of hardlines, apparel and footwear, our brick-and-mortar stores comped positively and our e-commerce channel remained strong, increasing 21%," stated Stack. "Our key strategies and investments are working, our major headwinds are behind us and we've bent the curve on sales. We are very enthusiastic about our business and are pleased to increase our full-year sales and earnings outlook."
The company expects to open eight new Dick’s stores and relocate three existing ones in 2019, along with two new Golf Galaxy stores and two relocations.
For the year, Dick's expects earnings per share of $3.30 to $3.45, which includes a tariff impact and a same-store sales increase in the low single-digits.
As of August 3, 2019, the company operated 727 Dick’s Sporting Goods stores, 95 Golf Galaxy stores and 35 Field & Stream stores.
The nation’s largest sporting goods retailer has eliminated all “hunt’ products, including hunting rifles, from about 125 stores. The space has been filled with “categories and products that can drive growth,” chairman and CEO Edward Stack said. The move, which was announced back in March, is part of Dick’s ongoing strategic review of its hunting business, including the 35-store Field & Stream division.
In February 2018, following the mass shootings in Parkland, Fla., Dick’s ended the sale of assault-style rifles and high-capacity magazines and of all guns and ammunition to anyone under 21 years old.
Dick’s net income was $112.5 million, or $1.26 per share, for the quarter ended August 3, compared with $119.4 million, or $1.20 per share, in the year-ago period. Analysts had estimated earnings per share of $1.21
Sales rose 3.2% to $2.26 billion, beating estimates of $2.21 billion. E-commerce sales for the quarter increased 21% and accounted for approximately 12% of total net sales.
Same-store sales rose 3.2%, which the company said was its strongest showing since 2016. Sales were driven by increases in both average ticket and transactions.
“We saw growth across each of our three primary categories of hardlines, apparel and footwear, our brick-and-mortar stores comped positively and our e-commerce channel remained strong, increasing 21%," stated Stack. "Our key strategies and investments are working, our major headwinds are behind us and we've bent the curve on sales. We are very enthusiastic about our business and are pleased to increase our full-year sales and earnings outlook."
The company expects to open eight new Dick’s stores and relocate three existing ones in 2019, along with two new Golf Galaxy stores and two relocations.
For the year, Dick's expects earnings per share of $3.30 to $3.45, which includes a tariff impact and a same-store sales increase in the low single-digits.
As of August 3, 2019, the company operated 727 Dick’s Sporting Goods stores, 95 Golf Galaxy stores and 35 Field & Stream stores.