Dick’s Sporting Goods to open 135 to 150 stores in next three years

Pittsburgh – As part of a wide-ranging fiscal update, Dick’s Sporting Goods Inc. is updating its fiscal 2017 sales target to $8.7 billion to $9 billion. The retailer also expects to open 135-150 namesake stores during the next three years, up from the 603 stores it operated at the end of 2014, focusing on new and underserved markets.



In addition to its core brand, Dick’s is expanding its Field & Stream format, with nine stores in 2015 and approximately five to eight locations in both 2016 and 2017. This will bring the Field & Stream store count to approximately 30 to 35 stores by the end of 2017. Dick’s also reiterated its commitment to the Golf Galaxy banner, but did not release any new store information for the brand.



Dick’s also expects significant growth in its e-commerce channel. The company plans to grow e-commerce sales to approximately $1 billion to 1.2 billion in fiscal 2017, from $628 million in fiscal 2014. Dick’s plans to have the Dick's Sporting Goods e-commerce site on its own platform in January 2017.



The company's GolfGalaxy.com site successfully launched on its new e-commerce platform in March 2015 and a transactional Field & Stream site is planned to go-live in fall 2015. Dick’s says it believes the investments in its e-commerce platform are critical to growing the business and increasing profitability.



Dick’s also reaffirmed its capital allocation strategy to provide returns to shareholders through investing in the business, repurchasing shares and paying dividends. To drive the growth of the business, the company expects to invest approximately $850 million in net capital expenditures during the next three years, primarily in new stores, store remodels and e-commerce. With its $1 billion five-year share repurchase authorization, Dick’s targets share repurchases of $100 to 200 million annually, and intends to pay quarterly dividends.



Dick’s also reaffirmed the first quarter and full year 2015 outlook provided in its fourth quarter 2014 earnings release Consolidated same-store sales are currently expected to be approximately flat to an increase of 2% in the first quarter of 2015. For fiscal 2015, Dick’s anticipates consolidated same-store sales to increase 1 to 3%.



"We continue to be excited about the profitable long-term growth opportunities of our business," said Edward W. Stack, chairman and CEO. "We are operating in an attractive space in which we continue to gain market share and believe there is significant runway ahead. We remain intensely focused on driving shareholder value over the next three years by investing in the long-term growth of the business, repurchasing shares and paying quarterly dividends."