Sporting goods retailer’s sales disappoint in Q1; to streamline ops

Dick’s Sporting Goods came up short on same-store sales growth in its first quarter amid what the company called “a challenging retail environment.”



Dick’s, the nation’s largest sporting goods retailer, also announced it has conducted a corporate reorganization to streamline its operations and reduce expense. In the second quarter, it expects to record a pre-tax charge of approximately $7 million for severance and other employee-related costs associated with the elimination of positions, primarily at the company's store support center.



The company reported net income of $58.2 million, or 52 cents per share, for the first quarter, compared to $56.9 million, or 50 cents per share, in the year-ago period. Adjusted EPS was 54 cents, in line with expectations.



Net sales for the quarter increased 9.9% to about $1.8 billion. Consolidated same-store sales rose 2.4% below expectations. E-commerce sales increased 11.0%. Online penetration for the quarter equaled 9.3% of total net sales, compared to 9.2% last year.



"Despite a challenging retail environment, we realized growth across each of our three primary categories of hardlines, apparel and footwear, and were pleased with the performance of our newly relaunched e-commerce site," said Edward W. Stack, chairman and CEO. "We remain optimistic as we drive profitable growth on our new e-commerce platform, make marked progress on our new merchandising strategy and continue to capture market share."



Dick’s expects to open approximately 43 new namesake stores in 2017, along with approximately eight new Golf Galaxy stores, and eight new Field & Stream stores. As of April 29, 2017, the company operated 691 Dick’s stores in 47 states, 98 Golf Galaxy stores in 32 states, and 29 Field & Stream stores in 14 states, with approximately 1.4 million sq. ft.