Dick's Sporting Goods scores with omnichannel

The CEO of Dick’s Sporting Goods says the growth of the retailer’s omnichannel network and improved marketing led to better-than-expected earnings in the fourth quarter.

Edward Stack, chairman and CEO at Dick’s, said the company reported a profit of $156 million, or $1.30 a share, up from a profit of $139 million, or $1.11 a share, a year earlier. Revenue grew 11% to $2.16 billion. Same store sales jumped 3.4%.

"We are very pleased with the record results we delivered in the fourth quarter. The 17% increase in earnings per diluted share was driven by the continued growth of our omnichannel network, our powerful marketing and merchandising strategies, and the execution of these strategies by our store associates," Stack said. "The strong performance validates the merchandising and space allocation strategies that we put into place during this past year. Our team also successfully navigated a heavily promotional environment while exceeding our top line and bottom line targets, and our inventory is well-positioned as we head into 2015."

Net income and revenue were up for the full year, with profit of $344.2 million, or $2.84 a share, on revenue of $6.81 billion, compared with net income of $337.6 million, or $2.69 a share, on revenue of $6.2 billion in 2013.

However, the retailer’s Golf Galaxy division continues to be a drain on the company. Comps at Golf Galaxy decreased 7.1% for the fourth quarter.

E-commerce penetration for the fourth quarter of 2014 was 14.4% of total sales, compared to 12.2% during the fourth quarter of 2013.

For 2015, the company expects per-share earnings between $3.10 and $3.20. It expects same-store sales to rise 1% to 3%. In the fourth quarter, the company opened six new Dick’s Sporting Goods stores and closed two Golf Galaxy stores.

As of Jan. 31, the company operated 603 Dick’s Sporting Goods stores in 46 states, 78 Golf Galaxy stores in 29 states, and 10 Field & Stream stores in five states.