DICK'S Sporting Goods' Q1 net income falls to US$260.6M from US$361.8M last year; net sales fall to US$2.7B from US$2.92B as comp store sales fall 8.4%

Sample article from our Consumer packaged goods (CPG)

PITTSBURGH , May 27, 2022 (press release) –

  • Comparable store sales declined 8.4%

  • Net sales of $2.7 billion increased 41% versus the first quarter of 2019

  • Delivered earnings per diluted share of $2.47 and non-GAAP earnings per diluted share of $2.85, reflecting pre-tax income as a percentage of net sales of 12.3%

  • Exchanged $100 million aggregate principal amount of convertible senior notes and unwound the corresponding portion of the convertible bond hedge and warrants for a combination of cash and shares, ending the first quarter with cash and cash equivalents of approximately $2.3 billion

  • Updates full year 2022 outlook to reflect the impact of evolving macroeconomic conditions

"We are pleased with our first quarter results as our team continued to move with agility and execute well in a highly dynamic environment. Over the past two years, we have demonstrated our ability to adeptly manage through the pandemic and other challenges - and we are confident in our continued ability to adapt quickly and execute through uncertain macroeconomic conditions. DICK'S has a unique and powerful position in the marketplace, and we remain confident in our strategies and our ability to deliver long-term sales and earnings growth."

Lauren Hobart, President and Chief Executive Officer

DICK'S Sporting Goods, Inc. (NYSE: DKS), the largest U.S. based full-line omni-channel sporting goods retailer, today reported sales and earnings results for the first quarter ended April 30, 2022.

First Quarter Operating Results

(dollars in millions, except per share data)

13 Weeks Ended

Change

April 30, 2022

May 1, 2021

Net sales

$             2,700.2

$             2,918.7

$    (218.5)

(7.5) %

Comparable store sales (1)

(8.4)       %

117.1      %

 

Income before income taxes (% of net sales)

12.29      %

16.10      %

(381) bps

Non-GAAP income before income taxes (% of net sales) (2)

12.29      %

16.35      %

(406) bps

Net income

$                260.6

$                361.8

$    (101.2)

(28.0) %

Non-GAAP net income (2)

$                260.6

$                367.2

$    (106.6)

(29.0) %

Earnings per diluted share

$                  2.47

$                  3.41

$      (0.94)

(27.6) %

Non-GAAP earnings per diluted share (2)

$                  2.85

$                  3.79

$      (0.94)

(24.8) %

1.

Beginning in fiscal 2022, the Company revised its method for determining its comparable store sales calculations to include relocated store locations. Prior year information is revised to reflect this change for comparability purposes. See additional details in Exhibit 99.2 of the Company's Form 8-K as filed with the SEC on March 8, 2022.

2.

In the fiscal 2022 period, there were no non-GAAP adjustments to reported income before income taxes or net income. In the fiscal 2021 period, there were non-GAAP adjustments due to amortization of the debt discount associated with the convertible senior notes. See New Accounting Pronouncement later in this release for further details. For additional information, the GAAP to non-GAAP reconciliations are included in a table later in the release under the heading "GAAP to Non-GAAP Reconciliations."

 

Balance Sheet

(dollars in millions)

As of

April 30, 2022

As of

May 1, 2021

$

Change (1)

% Change
(1)

Cash and cash equivalents

$             2,251.3

$            1,858.7

$      392.6

21.1 %

Inventories, net

$            2,824.8

$             2,012.1

$       812.8

40.4 %

Total debt (2)

$            1,947.7

$               425.8

$    1,521.9

357.4 %

1.

Column may not recalculate due to rounding.

2.

Fiscal 2022 includes debt with a carrying value of $1,481.7 million from the Company's issuance of the Senior Notes during the fourth quarter of 2021. Fiscal 2022 and 2021 includes debt with a carrying value of $466.0 million and $425.8 million, respectively, from the Company's issuance of the Convertible Senior Notes during fiscal 2020. The Company had no outstanding borrowings under its revolving credit facility in 2022 and 2021.

 

Capital Allocation

(dollars in millions)

13 Weeks Ended

$

Change (1)

% Change
(1)

April 30, 2022

May 1, 2021

Share repurchases (2)

$                42.2

$                 76.8

$       (34.6)

(45.0) %

Dividends (3)

$                 46.1

$                 33.3

$          12.7

38.2 %

Gross capital expenditures

$                73.8

$                 71.1

$            2.7

3.8 %

Net capital expenditures (4)

$                53.9

$                 57.2

$          (3.3)

(5.8) %

1.

Column may not recalculate due to rounding.

2.

In the fiscal 2022 period, repurchased 0.4 million shares of common stock at an average price of $101.39 per share under the Company's share repurchase program, under which the Company has $1.8 billion remaining at April 30, 2022.

3.

In the 2022 and 2021 periods, declared and paid quarterly dividends of $0.4875 per share and $0.3625 per share, respectively.

4.

For additional information, the GAAP to non-GAAP reconciliations are included in a table later in the release under the heading "GAAP to Non-GAAP Reconciliations."

Quarterly Dividend

On May 24, 2022, the Company's Board of Directors authorized and declared a quarterly dividend in the amount of $0.4875 per share on the Company's Common Stock and Class B Common Stock. The dividend is payable in cash on June 24, 2022 to stockholders of record at the close of business on June 10, 2022.

Full Year 2022 Outlook

The Company's Full Year Outlook for 2022 is presented below:

Metric

2022 Outlook

Earnings per diluted share

$7.95 to 10.15

 

 

Based on approximately 103 million diluted shares outstanding

 

 

Includes a minimum of $300 million of share repurchases

$9.15 to 11.70 on a non-GAAP basis, which excludes the impact of assumed
share settlement of the Convertible Senior Notes

 

 

Based on approximately 88 million diluted shares outstanding

Comparable store sales

Negative 8% to negative 2%

Capital expenditures

$400 to 425 million on a gross basis

$340 to 365 million on a net basis

Conference Call Info  

The Company will host a conference call today at 10:00 a.m. Eastern Time to discuss the first quarter results. Investors will have the opportunity to listen to the earnings conference call over the internet through the Company's website located at investors.DICKS.com. To listen to the live call, please go to the website at least fifteen minutes early to register, download, and install any necessary audio software. For those who cannot listen to the live webcast, it will be archived on the Company's website for approximately twelve months.

Non-GAAP Financial Measures

In addition to reporting the Company's financial results in accordance with generally accepted accounting principles ("GAAP"), the Company reports certain financial results that differ from what is reported under GAAP. These non-GAAP financial measures include non-GAAP income before income taxes, consolidated non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP diluted shares outstanding, and net capital expenditures, which management believes provides investors with useful supplemental information to evaluate the Company's ongoing operations and to compare with past and future periods. Management believes that adjusting interest expense and share dilution related to the convertible senior notes and convertible bond hedge is useful to investors because it provides a more complete view of the economics of the transaction. Management also uses certain non-GAAP measures internally for forecasting, budgeting, and measuring its operating performance. These measures should be viewed as supplementing, and not as an alternative or substitute for, the Company's financial results prepared in accordance with GAAP. The methods used by the Company to calculate its non-GAAP financial measures may differ significantly from methods used by other companies to compute similar measures. As a result, any non-GAAP financial measures presented herein may not be comparable to similar measures provided by other companies. A reconciliation of the Company's non-GAAP measures to the most directly comparable GAAP financial measures are provided below and on the Company's website at investors.DICKS.com.

New Accounting Pronouncement

The Company adopted a new accounting pronouncement in the first quarter of 2022, which impacted the accounting treatment for convertible debt with cash conversion features, such as the Convertible Senior Notes. The standard required that the Company eliminate the non-cash debt discount and related interest expense from its Convertible Senior Notes, which decreased their annualized interest rate from 11.6% to 3.9%. The new standard also required earnings per diluted share to assume share conversion of the entire amount of shares underlying the Convertible Senior Notes as of the beginning of the period presented using the if-converted method. The Company adopted the standard under the modified retrospective approach and therefore, will not revise prior periods. The Company does not expect the net effect of these changes will materially impact its full year 2022 GAAP earnings per diluted share and is reflected in its fiscal 2022 outlook.

Forward-Looking Statements Involving Known and Unknown Risks and Uncertainties  

This release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified as those that may predict, forecast, indicate or imply future results or performance and by forward-looking words such as "believe", "anticipate", "expect", "estimate", "predict", "intend", "plan", "project", "goal", "will", "will be", "will continue", "will result", "could", "may", "might" or any variations of such words or other words with similar meanings. These statements are subject to risks and uncertainties and change based on various important factors, many of which may be beyond the Company's control. The Company's future performance and actual results may differ materially from those expressed or implied in such forward-looking statements. Forward-looking statements should not be relied upon by investors as a prediction of actual results. Forward-looking statements include statements regarding, among other things, the Company's future performance, including 2022 outlook for earnings, sales, and capital expenditures; share repurchases and dividends; and the expected impact of the new accounting pronouncement discussed in the preceding section.

Factors that could cause actual results to differ materially from those expressed or implied in any forward-looking statements include, but are not limited to: the impact on our business, operations and financial results due to the duration and scope of COVID-19, including the impact due to disruptions in our or our vendors' supply chains and due to restrictions imposed by federal, state, and local governments in response to increases in the number of COVID-19 cases in areas in which we operate; challenging macroeconomic conditions, including inflationary pressures and supply chain constraints, due to COVID-19, the conflict in Ukraine, or otherwise and the effectiveness of measures to mitigate such impact; changes in consumer discretionary spending; investments in omni-channel growth not producing the anticipated benefits within the expected time-frame or at all; risks relating to vertical brands and new retail concepts; investments in business transformation initiatives not producing the anticipated benefits within the expected time-frame or at all; the amount devoted to strategic investments and the timing and success of those investments; inventory turn; changes in the competitive market and competition amongst retailers, including an increase in promotional activity; changes in consumer demand or shopping patterns and the ability to identify new trends and have the right trending products in stores and online; weather-related disruptions and seasonality of the Company's business; changes in existing tax, labor, foreign trade and other laws and regulations, including those imposing new taxes, surcharges, or tariffs; increasing labor costs; limitations on the availability of attractive retail store sites; unauthorized disclosure of sensitive or confidential customer information; website downtime, disruptions or other problems with the eCommerce platform, including interruptions, delays or downtime caused by high volumes of users or transactions, deficiencies in design or implementation, or platform enhancements; disruptions or other problems with information systems; increasing direct competition from vendors, and increasing product costs due to various reasons, including foreign trade issues, currency exchange rate fluctuations, and increasing prices for raw materials due to inflation; our ability to hire and retain quality teammates, including store managers and sales associates; the loss of key personnel; and developments with sports leagues, professional athletes or sports superstars.

For additional information on these and other factors that could affect the Company's actual results, see the risk factors set forth in the Company's filings with the Securities and Exchange Commission ("SEC"), including the most recent Annual Report filed with the SEC on March 23, 2022. The Company disclaims and does not undertake any obligation to update or revise any forward-looking statement in this press release, except as required by applicable law or regulation. Forward-looking statements included in this release are made as of the date of this release.

About DICK'S Sporting Goods, Inc.

DICK'S Sporting Goods (NYSE: DKS) creates confidence and excitement by personally equipping all athletes to achieve their dreams. Founded in 1948 and headquartered in Pittsburgh, the leading omnichannel retailer serves athletes and outdoor enthusiasts in more than 850 DICK'S Sporting Goods, Golf Galaxy, Field & Stream, Public Lands, Going Going Gone! and Warehouse Sale stores, online, and through the DICK'S mobile app. DICK'S also owns and operates DICK'S House of Sport and Golf Galaxy Performance Center, as well as GameChanger, a youth sports mobile app for scheduling, communications, live scorekeeping and video streaming.

Driven by its belief that sports make people better, DICK'S has been a longtime champion for youth sports and, together with its Foundation, has donated millions of dollars to support under-resourced teams and athletes through the Sports Matter program and other community-based initiatives. Additional information about DICK'S business, corporate giving, sustainability efforts and employment opportunities can be found on dicks.cominvestors.dicks.comsportsmatter.orgdickssportinggoods.jobs and on Facebook, Twitter and Instagram.

Contacts:

Investor Relations:
Nate Gilch, Senior Director of Investor Relations
DICK'S Sporting Goods, Inc.
investors@dcsg.com
(724) 273-3400

Media Relations:
(724) 273-5552 or press@dcsg.com

Category: Earnings

###

DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED

(In thousands, except per share data)

 

 

 

13 Weeks Ended

 

 

April 30,
2022

 

% of

Sales

 

May 1,
2021

 

% of

Sales(1)

 

 

 

 

 

 

 

 

 

Net sales

 

$         2,700,205

 

100.00%

 

$          2,918,719

 

100.00%

Cost of goods sold, including occupancy and
  distribution costs

 

1,715,491

 

63.53

 

1,830,092

 

62.70

 

 

 

 

 

 

 

 

 

     GROSS PROFIT

 

984,714

 

36.47

 

1,088,627

 

37.30

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

615,293

 

22.79

 

608,294

 

20.84

Pre-opening expenses

 

2,900

 

0.11

 

4,524

 

0.15

 

 

 

 

 

 

 

 

 

     INCOME FROM OPERATIONS

 

366,521

 

13.57

 

475,809

 

16.30

 

 

 

 

 

 

 

 

 

Interest expense

 

25,642

 

0.95

 

13,381

 

0.46

Other expense (income)

 

9,022

 

0.33

 

(7,350)

 

(0.25)

 

 

 

 

 

 

 

 

 

     INCOME BEFORE INCOME TAXES

 

331,857

 

12.29

 

469,778

 

16.10

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

71,298

 

2.64

 

108,022

 

3.70

 

 

 

 

 

 

 

 

 

     NET INCOME

 

$            260,559

 

9.65%

 

$             361,756

 

12.39%

 

 

 

 

 

 

 

 

 

EARNINGS PER COMMON SHARE:

 

 

 

 

 

 

 

 

     Basic

 

$                    3.42

 

 

 

$                    4.27

 

 

     Diluted

 

$                    2.47

 

 

 

$                    3.41

 

 

 

 

 

 

 

 

 

 

 

NUMERATOR USED TO COMPUTE EARNINGS PER
  COMMON SHARE:

 

 

 

 

 

 

 

 

     Basic

 

$            260,559

 

 

 

$             361,756

 

 

     Diluted

 

$            268,768

 

 

 

$             361,756

 

 

 

 

 

 

 

 

 

 

 

WEIGHTED AVERAGE COMMON SHARES
  OUTSTANDING:

 

 

 

 

 

 

 

 

     Basic

 

76,181

 

 

 

84,750

 

 

     Diluted

 

108,629

 

 

 

106,010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)  Column does not add due to rounding

 

 

 

 

 

 

 

 

 

 

DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS - UNAUDITED

(In thousands)

 

 

 

April 30,
2022

 

May 1,
2021

 

January 29,
2022

ASSETS

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

  Cash and cash equivalents

 

$             2,251,338

 

$             1,858,737

 

$            2,643,205

  Accounts receivable, net

 

76,253

 

67,145

 

68,263

  Income taxes receivable

 

1,639

 

2,803

 

1,978

  Inventories, net

 

2,824,832

 

2,012,054

 

2,297,609

  Prepaid expenses and other current assets

 

102,603

 

100,586

 

95,601

     Total current assets

 

5,256,665

 

4,041,325

 

5,106,656

 

 

 

 

 

 

 

  Property and equipment, net

 

1,305,137

 

1,319,774

 

1,319,681

  Operating lease assets

 

2,048,151

 

2,150,664

 

2,044,819

  Intangible assets, net

 

86,160

 

89,119

 

86,767

  Goodwill

 

245,857

 

245,857

 

245,857

  Deferred income taxes

 

66,080

 

47,491

 

35,024

  Other assets

 

211,750

 

172,350

 

202,872

TOTAL ASSETS

 

$             9,219,800

 

$            8,066,580

 

$             9,041,676

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

  Accounts payable

 

$              1,491,931

 

$             1,239,503

 

$              1,281,322

  Accrued expenses

 

462,085

 

499,071

 

620,143

  Operating lease liabilities

 

476,343

 

468,318

 

480,318

  Income taxes payable

 

80,023

 

141,868

 

13,464

  Deferred revenue and other liabilities

 

292,457

 

238,751

 

317,433

     Total current liabilities

 

2,802,839

 

2,587,511

 

2,712,680

LONG-TERM LIABILITIES:

 

 

 

 

 

 

  Revolving credit borrowings

 

 

 

   Senior notes

 

1,481,664

 

 

1,481,443

   Convertible senior notes

 

466,026

 

425,799

 

449,287

  Long-term operating lease liabilities

 

2,095,314

 

2,253,883

 

2,099,146

  Other long-term liabilities

 

179,351

 

200,663

 

197,534

     Total long-term liabilities

 

4,222,355

 

2,880,345

 

4,227,410

COMMITMENTS AND CONTINGENCIES

 

 

 

 

 

 

STOCKHOLDERS' EQUITY:

 

 

 

 

 

 

  Common stock

 

544

 

610

 

520

  Class B common stock

 

236

 

237

 

236

  Additional paid-in capital

 

1,368,211

 

1,448,892

 

1,488,834

  Retained earnings

 

4,212,451

 

3,394,067

 

3,956,602

  Accumulated other comprehensive (loss) income

 

(89)

 

15

 

(82)

  Treasury stock, at cost

 

(3,386,747)

 

(2,245,097)

 

(3,344,524)

     Total stockholders' equity

 

2,194,606

 

2,598,724

 

2,101,586

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

$             9,219,800

 

$            8,066,580

 

$             9,041,676

 

 

 

 

 

 

 

 

DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED

(In thousands)

 

 

 

13 Weeks Ended

 

 

April 30,
2022

 

May 1,
2021

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 Net income

 

$           260,559

 

$            361,756

 Adjustments to reconcile net income to net cash (used in) provided by
 operating activities:

 

 

 

 

  Depreciation and amortization

 

79,673

 

78,366

  Amortization of deferred financing fees and debt discount

 

1,371

 

7,306

  Deferred income taxes

 

(1,791)

 

3,984

  Stock-based compensation

 

15,177

 

12,870

  Other, net

 

264

 

  Changes in assets and liabilities:

 

 

 

 

     Accounts receivable

 

(17,435)

 

(12,439)

     Inventories

 

(527,223)

 

(58,486)

     Prepaid expenses and other assets

 

(6,138)

 

(9,603)

     Accounts payable

 

237,076

 

38,057

     Accrued expenses

 

(132,185)

 

(44,310)

     Income taxes payable / receivable

 

66,898

 

104,464

     Construction allowances provided by landlords

 

19,891

 

13,902

     Deferred revenue and other liabilities

 

(35,047)

 

(21,240)

     Operating lease assets and liabilities

 

(21,391)

 

(27,276)

  Net cash (used in) provided by operating activities

 

(60,301)

 

447,351

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

  Capital expenditures

 

(73,783)

 

(71,097)

  Proceeds from sale of other assets

 

14,261

 

  Deposits and other investing activities

 

(10,780)

 

(2,338)

  Net cash used in investing activities

 

(70,302)

 

(73,435)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

  Principal paid in connection with exchange of convertible senior notes

 

(100,000)

 

  Payments on other long-term debt and finance lease obligations

 

(178)

 

(220)

  Proceeds from exercise of stock options

 

12,665

 

12,333

  Minimum tax withholding requirements

 

(33,287)

 

(18,601)

  Cash paid for treasury stock

 

(67,909)

 

(76,841)

  Cash dividends paid to stockholders

 

(46,081)

 

(33,334)

  Decrease in bank overdraft

 

(26,467)

 

(56,647)

  Net cash used in financing activities

 

(261,257)

 

(173,310)

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS

 

(7)

 

64

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS

 

(391,867)

 

200,670

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

 

2,643,205

 

1,658,067

CASH AND CASH EQUIVALENTS, END OF PERIOD

 

$         2,251,338

 

$         1,858,737

 

DICK'S SPORTING GOODS, INC.

GAAP to NON-GAAP RECONCILIATIONS - UNAUDITED

 

Non-GAAP Net Income and Earnings Per Share Reconciliations

(in thousands, except per share amounts)

 

 

13 Weeks Ended April 30, 2022

 

 

 

 

 

 

 

Net income

After tax
interest from
Convertible
Senior Notes (2)

Net income
for earnings
per diluted
share

Weighted
average
diluted
shares

Earnings
per
diluted
share

GAAP Basis

$   260,559

$                8,209

$     268,768

108,629

$         2.47

     % of Net Sales

9.65  %

0.30  %

9.95  %

 

 

Convertible senior notes (1)

(8,209)

(8,209)

(17,080)

 

Non-GAAP Basis

$   260,559

$                      —

$     260,559

91,549

$         2.85

     % of Net Sales

9.65  %

—  %

9.65  %

 

 

(1)

Adjustment excludes the impact of assumed share settlement of the convertible notes as required by the if-converted method. Due to the Company's intent to settle the convertible notes' principal in cash and the shares the Company expects to receive under its convertible bond hedge, which is designed to offset dilution, the Company does not expect the convertible notes will have a dilutive effect upon conversion. Accordingly, the Company believes reflecting the notes as debt more closely represents the economics of the transaction upon future conversion.

(2)

The provision for income taxes for non-GAAP adjustments was calculated at 26%, which approximates the Company's blended tax rate.

 

 

13 Weeks Ended May 1, 2021

 

 

 

 

 

 

 

 

Income
from
operations

Interest
expense

Income
before
income taxes

Net

 income (2)

Diluted
shares
outstanding
during
period

Earnings
per
diluted
share

GAAP Basis

$   475,809

$    13,381

$     469,778

$      361,756

106,010

$          3.41

     % of Net Sales

16.30  %

0.46  %

16.10 %

12.39 %

 

 

Convertible senior notes (1)

(7,307)

7,307

5,407

(9,214)

 

Non-GAAP Basis

$   475,809

$      6,074

$     477,085

$      367,163

96,796

$         3.79

     % of Net Sales

16.30  %

0.21 %

16.35 %

12.58 %

 

 

(1)

Amortization of the non-cash debt discount on the Company's convertible senior notes and diluted shares that will be offset at settlement by shares delivered from the convertible bond hedge purchased by the Company.

(2)

The provision for income taxes for non-GAAP adjustments was calculated at 26%, which approximated the Company's blended tax rate.

 

 

52 Weeks Ended January 29, 2022

 

 

 

 

 

 

 

 

Income
from
operations

Interest
expense

Income
before
income taxes

Net

 income (2)

Diluted
shares
outstanding
during
period

Earnings
per
diluted
share

GAAP Basis

$ 2,034,503

$   57,839

$  1,994,438

$    1,519,871

109,578

$        13.87

     % of Net Sales

16.55 %

0.47  %

16.22 %

12.36 %

 

 

Convertible senior notes (1)

(30,794)

30,794

22,788

(11,332)

 

Non-GAAP Basis

$ 2,034,503

$   27,045

$  2,025,232

$  1,542,659

98,246

$       15.70

     % of Net Sales

16.55 %

0.22  %

16.47 %

12.55 %

 

 

(1)

Amortization of the non-cash debt discount on the Company's convertible senior notes and diluted shares that are designed to be offset at settlement by shares delivered from the convertible bond hedge purchased by the Company.

(2)

The provision for income taxes for non-GAAP adjustments was calculated at 26%, which approximated the Company's blended tax rate.

 

Reconciliation of Gross Capital Expenditures to Net Capital Expenditures

(in thousands) 

 

The following table represents a reconciliation of the Company's gross capital expenditures to its capital expenditures, net of tenant allowances. 

 

 

 

13 Weeks Ended

 

 

April 30,
2022

 

May 1,
2021

Gross capital expenditures

 

$                  (73,783)

 

$                     (71,097)

Construction allowances provided by landlords

 

19,891

 

13,902

Net capital expenditures

 

$                  (53,892)

 

$                     (57,195)

 

Reconciliation of Non-GAAP Consolidated Net Income and Earnings Per Diluted Share Guidance

(in millions, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

52 Weeks Ended January 28, 2023

 

Low End

 

High End

 

Net

income

After tax
interest
from
Convertible
Senior
Notes (2)

Net
income
for
earnings
per
diluted
share

Weighted
average
diluted
shares

Earnings
per
diluted
share

 

Net

income

After tax
interest
from
Convertible
Senior
Notes (2)

Net
income
for
earnings
per
diluted
share

Weighted
average
diluted
shares

Earnings
per
diluted
share

GAAP Basis

$     804

$               18

$        822

103

$       7.95

 

$  1,029

$               18

$     1,047

103

$      10.15

Convertible
     senior notes (1)

(18)

(18)

(15)

 

 

(18)

(18)

(15)

 

Non-GAAP Basis

$     804

$               —

$        804

88

$       9.15

 

$  1,029

$               —

$    1,029

88

$      11.70

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Adjustment excludes the impact of assumed share settlement of the convertible notes as required by the if-converted method. Due to the Company's intent to settle the convertible notes' principal in cash and the shares the Company expects to receive under its convertible bond hedge, which is designed to offset dilution, the Company does not expect the convertible notes will have a dilutive effect upon conversion. Accordingly, the Company believes reflecting the notes as debt more closely represents the economics of the transaction upon future conversion.

(2)

The provision for income taxes for non-GAAP adjustments was calculated at 26%, which approximates the Company's blended tax rate.

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.

More from our Consumer packaged goods (CPG) Coverage
See our dashboard in action - schedule an demo
Chelsey Quick
Chelsey Quick
- VP Client Success -

We offer built-to-order consumer packaged goods (cpg) coverage for our clients. Contact us for a free consultation.

About Us

We deliver market news & information relevant to your business.

We monitor all your market drivers.

We aggregate, curate, filter and map your specific needs.

We deliver the right information to the right person at the right time.

Our Contacts

1990 S Bundy Dr. Suite #380,
Los Angeles, CA 90025

+1 (310) 553 0008

About Cookies On This Site

We collect data, including through use of cookies and similar technology ("cookies") that enchance the online experience. By clicking "I agree", you agree to our cookies, agree to bound by our Terms of Use, and acknowledge our Privacy Policy. For more information on our data practices and how to exercise your privacy rights, please see our Privacy Policy.